Better Buy: Plug Power vs. Bloom Energy
Fuel cells generate electricity through an electrochemical reaction instead of burning fuel. While some fuel cells can use natural gas, biogas, or other fuels as input, cells that use hydrogen produce no emissions, with electricity and water as their only byproducts.
In addition to input fuels, fuel cells may differ in terms of their technologies. The fuel cells that Plug Power (NASDAQ: PLUG) and Bloom Energy (NYSE: BE) make vary based on their designs as well as target markets. Let's discuss which of the two companies looks like a better investment right now.
Though hydrogen usually comes to mind first when anyone talks about fuel cells, fuel cells can also run on other fuels, such as natural gas or biogas. As an example, Bloom Energy produces solid oxide fuel cells, which are frequently fueled by natural gas. They don't require an expensive catalyst and operate at very high temperatures. These cells are typically used in stationary and backup power generation. Notably, Bloom Energy's design allows its cells to use hydrogen as fuel, but the company believes that high costs and restricted availability limit hydrogen's usefulness.
Source Fool.com
