Better Buy: Plug Power vs. Bloom Energy

Fuel cell stocks have surely captivated investors' attention recently. The growth in renewables has increased the demand for energy storage, as generation from renewable sources tends to be intermittent. While batteries are right now most widely used for energy storage, there is a sizable, and growing, demand for fuel cells too. Both Plug Power (NASDAQ: PLUG) and Bloom Energy (NYSE: BE) are poised to benefit from this trend. But one looks better than the other right now. Let's see why.

Plug Power's fuel cells differ considerably from those of Bloom Energy. Plug Power offers proton exchange membrane, or PEM, fuel cells, which is the most common fuel cell technology in use currently. It requires a platinum catalyst, which makes it expensive. Moreover, platinum is extremely susceptible to impurities present in fossil-fuel derived hydrogen. So, PEM fuel cells also require an additional reactor to reduce carbon monoxide present in hydrogen fuel, adding to the cost. However, PEM fuel cells are compact, can start or stop quickly, and can operate at lower temperatures. All these characteristics make them more suitable for transportation applications.

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Source Fool.com