One of today’s biggest movers in the clean energy sector happens to be Ballard Power (NASDAQ:BLDP). Other hydrogen-related stocks are also on the move today, but the incredible 13% move higher in BLDP stock is among the best in the sector. This move comes on the heels of some important announcements from Ballard in terms of its overall production plans and an intriguing new hydrogen technology.
Let’s start with the company’s next-generation bipolar plates. Ballard has developed a thinner plate for its hydrogen fuel cells alongside “an expansion of membrane electrode assembly (MEA) manufacturing capacity in Canada as part of Ballard’s ‘3 by 3’ stack cost reduction program.” These bipolar plates are among the most costly components in producing hydrogen fuel cells. Thus, as the company continues to scale its production of these plates, it’s expected that costs could come down considerably.
Some of these cost reductions are expected to come from “lower cost material suppliers.” However, the company’s introduction of new disruptive manufacturing technology could amplify such gains. Thus, investors have a potential technology that’s almost ready for the big time on the near-term horizon.
Let’s dive into why BLDP stock investors are clearly viewing this announcement as such a big deal.
BLDP Stock Surges on Key Operational Updates
Cost matters in the world of clean energy. Yes, governments and many individuals want to see cleaner energy power the future. Given concerns around climate change and the negative environmental impacts of fossil-fuel consumption and mining (tied to the creation of batteries), hydrogen fuel cells have long been touted as an excellent alternative for green energy enthusiasts.
However, bringing fuel cells mainstream has proven expensive. Most of this has to do with cost and relative efficiency.
That said, if Ballard is able to effectively mass produce these fuel cells at scale — and introduce applications across its portfolio of buses and other heavy-duty vehicles — that’s step one. Investors appear to be looking past this news, thinking about what the future applications could be for hydrogen-powered passenger vehicles, something that has been quite an elusive market to date.
I’m not going to get ahead of myself and jump on the BLDP stock boat, necessarily. But the future potential of this new manufacturing process and fuel cell technology is exciting. Investors appear to be correct in bidding up shares of hydrogen stocks today on such key news.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Chris MacDonald 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 InvestorPlace.com Publishing Guidelines.
