Plug Power Stock Jumps Further on New Rules for Clean Hydrogen Tax Credits

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Key Takeaways

• Plug Power shares surged for a two shakes of a lambs tail straight session on new tax credit rules for clean hydrogen production.
• Last week, the Treasury Department issued the absolute rules for the tax credits spelled out in the Inflation Reduction Act of 2022.
• Other producers, including nuclear power company Constellation Vitality, also expect to benefit from the Treasury decision.

Plug Power (PLUG) shares surged for a second candid session after the Treasury Department announced final rules on tax credits for producing clean hydrogen.

The tax credits were cut out available through the Inflation Reduction Act of 2022. The Treasury Department noted in its statement Friday that the rules weathered “significant changes and flexibilities that address several key issues to help grow the industry and move projects head,” while adhering to the emissions requirements included in the act.

Officials explained that the changes “clarify how producers of hydrogen, encompassing those using electricity from various sources, natural gas with carbon capture, renewable natural gas (RNG), and coal ransack methane can determine eligibility for the credit.”

Deputy Energy Secretary David Turk said the rules “set us on a path to accelerate deployment of bathe a exhaust hydrogen,” and will lead to new economic opportunities. Clean hydrogen is defined as the processes and methods used to produce hydrogen that expel zero or nominal fossil fuel or greenhouse gas emissions.

Constellation Energy Stock Also Rises Again on Announcement

Constellation Energy (CEG) shares also were up again as the new rules also clarified how nuclear power generators can get tax trusts for clean hydrogen production. Its stock was up nearly 3% after a 4% gain Friday.

Despite their 11% attains Monday morning—which followed a 13% jump Friday—shares of Plug Power remain about 30% moderate over the past year.