West Virginia Sen. Joseph Manchin has, it seems, pulled the plug on President Joseph Biden’s plans for climate spending. Consequently, Plug Power (NASDAQ:PLUG), FuelCell Energy (NASDAQ:FCEL) and Bloom Energy (NYSE:BE) stocks are falling today.
Now, you might wonder why one senator’s opinion should matter so much. Bear in mind that the U.S. Senate is divided 50-50 between Democrats and Republicans, so every vote counts. If Biden wants to get further climate spending passed, Manchin’s support will be crucial.
For the time being, though, it appears that Manchin isn’t budging on this issue. It’s a devastating blow for investors in clean energy, as Biden envisions a goal of reducing U.S. carbon emissions by roughly 50% by the end of this decade.
What’s disappointing for some senators, however, is potentially just as bad for companies like Plug Power, FuelCell Energy and Bloom Energy. After all, these businesses have benefited from the government’s pro-environment initiatives.
What’s Happening with Hydrogen Stocks?
With Biden’s climate change spending plans stalling out for the time being, traders are punishing hydrogen stocks today. The granddaddy of hydrogen fuel cell stocks, PLUG stock, was down 15% early in the session.
Meanwhile, FCEL stock slumped 8% and BE stock skidded 10%. All three of these stocks are currently in the red for 2022 so far.
There may be a glimmer of hope for the investors, however. According to Sam Runyon, a spokesperson for Sen. Manchin, the senator “has not walked away from the table.” So, Biden’s climate change spending package might not be dead in the water just yet.
Furthermore, it’s been reported that Democrats were “cautiously optimistic that a deal could be reached” as of Thursday morning. Whether the downtrodden investors of PLUG, FCEL and BE stocks can remain optimistic now is a different story altogether.
On the date of publication, David Moadel 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.