This year has brought a rise in interest in sustainable energy solutions, and politicians are taking note. Today began with a reminder of this as fuel cell stocks rose in anticipation of a vote on a historic infrastructure spending package which, if passed, would significantly increase government spending in clean energy development. And this wasn’t the only political news that has fuel cell stocks rising today.
What’s Happening with Fuel Cell Stocks
Yesterday, House Speaker Nancy Pelosi confirmed that the House of Representatives would be voting on the historic infrastructure bill on Thursday. The bill being crafted by Democrats would increase investment in several areas, one of which is green energy, “as quickly as possible.”
This morning, more news for the fuel cell industry broke when industry leader FuelCell Energy (NASDAQ:FCEL) applauded California Gov. Gavin Newsom for his recent signing of Senate Bill 155. The new legislation represents a significant investment on the part of the state’s leaders in the types of clean energy technology that can combat the effects of climate change.
It didn’t take long for FCEL stock to start rising. As of this writing, the stock is up more than 9% for the day. It has been a good day for its competitors as well. Fellow fuel cell producer Bloom Energy (NYSE:BE) and Plug Power (NASDAQ:PLUG) are up 6.1% and 4.67%. Each stock has risen consistently throughout the day and displayed similar growth patterns. All three stocks experienced a similar growth pattern last week.
What It Means
This type of government investment usually indicates that the companies involved are in for a good year. The clean energy boom is here, and it’s not going away as the need for sustainable energy solutions becomes increasingly clear.
The aforementioned companies will likely have plenty to do as the boom continues. A fuel cell, as defined by the Department of Energy, “uses the chemical energy of hydrogen or other fuels to cleanly and efficiently produce electricity.”
California’s Senate Bill 155 is particularly important for the growth of fuel cell stocks because it includes a two-year extension of the Fuel Cell Net Energy Metering (NEM) program. As Jason Few, FuelCell’s CEO, summarized in a statement, “Fuel Cell NEM allows businesses to invest their own private capital in clean, firm technology that reduces their energy consumption and lowers their environmental footprint.”
An additional benefit is that it allows the state to benefit from the creation of new jobs while greenhouse gas emissions are reduced.
What’s Next for Fuel Cell Stocks
We’ve already seen other types of clean and renewable energy expand. As long as Democrats remain in power, the trend of investments in clean energy development will continue.
It is also likely that other state leaders like Newsom will recognize the need for legislature like Senate Bill 155 as it yields positive results for California’s economy.
Unless a better type of technology comes along, it is inevitable that fuel cell technology will continue to expand, playing a pivotal role in the ever-developing green revolution.
For curious investors, these companies are absolutely worth watching. The future is green in more ways than one.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.