Why Plug Power Stock Jumped Today

Shares of hydrogen fuel specialist Plug Power (NASDAQ: PLUG) jumped as much as 5.8% early Monday on the heels of the Senate's passage of the Inflation Reduction Act. As of 12:35 p.m. ET, the stock had settled back to a gain of 1.6%.

The legislation now appears to have a clear path to becoming law, and it includes subsidies for hydrogen that could significantly benefit companies like Plug Power. The provision for alternative energy would give subsidies to the cleanest form of hydrogen production, so-called green hydrogen. The process to generate green hydrogen uses only renewable energy as its power source. Plug Power has been investing heavily to grow a network of green hydrogen production facilities throughout the U.S.

Source Fool.com