Where Will Plug Power Be in 5 Years?
For all that hydrogen can potentially power, investors' enthusiasm for hydrogen fuel cells is plausible. It can be a real clean energy source with zero emissions. It can propel cars, aircraft, ships, buses, trucks, and forklifts, and can also be used in stationary power generation and backup power systems.
But hydrogen fuel cells face onerous challenges in their extensive adoption. Fuel cell companies, including Plug Power (NASDAQ: PLUG), believe that they can overcome these challenges over time. Let's see what may work in favor of these companies, where they face risks, and what it all means for Plug Power.
Plug Power has largely been focused on warehouse forklifts used by companies such as Amazon and Home Depot. Materials handling business accounted for 94% of Plug Power's 2020 revenue. The company is looking to expand its offerings, including in the green hydrogen market through its electrolyzers -- a process that converts electricity and water into hydrogen gas -- and in the rapidly growing electric vehicles market. This should significantly increase the company's total addressable market. Plug Power hopes to generate nearly 40% of its revenue from businesses other than materials handling by 2024.
Source Fool.com
