This is Why Plug Power Jumped 12% on Friday

Keep an eye on hydrogen stocks, like Plug Power (SYM: PLUG).

For one, the industry is still waiting on a final decision on potential changes to the Biden Administration’s 45v tax credits, which could save up to $3 per kilogram of production if companies can meet what many are calling tough new standards.

Right now, according to Barron’s, “Ernest Moniz, a former energy secretary, heads the consortium formed to organize a market for clean hydrogen, called the Hydrogen Demand Initiative. Moniz said recently that the guidance presented by the IRS was too narrow and could slow the industry’s growth if not changed.”

While we wait to see what happens next, beaten-down hydrogen stocks, like Plug Power (SYM: PLUG) just jumped about 12% higher late last week. All after signing a memorandum of understanding (MOU) with Australian developer Allied Green Ammonia (SYM: AGA) to supply 3GW of PEM electrolysers from 2027 for a planned project in Australia’s Northern Territory, as noted by HydrogenInsight.com.

According to AGA, the project — which will produce 2,500 tonnes of green ammonia a day, or more than 900,000 tonnes annually — “will be one of the most energy efficient green hydrogen and green ammonia projects globally,” they added.

PLUG last traded at $2.74 on a volume spike to 44 million shares, as compared to its daily average volume of 33 million shares.