BlackRock Bought Hydrogen Stocks PLUG and FCEL. Here’s Why.

  • BlackRock (NYSE:BLK) recently purchased shares of two hydrogen stocks
  • Plug Power (NASDAQ:PLUG) and FuelCell Energy (NASDAQ:FCEL) are both major players in the hydrogen space
  • This is a huge stamp of approval on clean energy from one of the biggest asset management firms
Hydrogen renewable energy production - hydrogen gas for clean electricity solar and wind turbine facility.
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Hydrogen stocks like Plug Power (NASDAQ:PLUG) and FuelCell Energy (NASDAQ:FCEL) are in the spotlight after BlackRock (NYSE:BLK) disclosed purchasing shares. Plug Power operates as a provider in alternative energy solutions and focuses on developing hydrogen and fuel cell systems. The company has launched over 50,000 fuel cell systems for the electric mobility industry. Plug Power is also one of the world’s largest hydrogen buyers.

FuelCell engages in the design, development and production of fuel cells for clean power generation. The company’s SureSource products allows its customers to generate clean energy on-site. Furthermore, FuelCell seeks to store energy by converting it into hydrogen. The hydrogen can then be converted into electricity if needed.

With that in mind, let’s get into the details of the purchases.

BlackRock Buys Hydrogen Stocks PLUG and FCEL

Both purchases were disclosed via amended 13G filings received by the U.S. Securities and Exchange Commission (SEC) on May 9. BlackRock purchased 10.1 million shares of PLUG, increasing its existing position by 21%. After the purchase, the investment firm owns a total of 58.1 million shares. Additionally, BlackRock purchased 5.3 million shares of FCEL, increasing its existing position by 16%. After the purchase, it owns a total of 37.9 million shares.

Both PLUG and FCEL have had a rough start to 2022. PLUG has lost more than 45% of its market capitalization, while FCEL has lost over 40%. However, BlackRock’s purchases seem to be a stamp of approval for clean energy. The firm also has an average holding period of 23.43 quarters, or almost six years. This suggests that BlackRock plans on holding the two companies for the long term.

What Is Hydrogen Energy?

Hydrogen is a clean fuel that can be produced from several sources, such as solar, wind and nuclear power. Hydrogen energy is useful for several applications, such as in cars, houses and for portable power. When consumed in a fuel cell, hydrogen produces only water.

Hydrogen is classified as an alternative vehicle fuel. The U.S. Energy Information Administration (EIA) states that a fuel cell may be “two to three times more efficient than an internal combustion engine running on gasoline.”

The energy source is still in its early phases. However, the potential for hydrogen to be a mainstream source of clean fuel seems to be reason enough for a small investment.

On the date of publication, Eddie Pan did not hold (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 Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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