The management team around Plug Power boss Andy Marsh is under considerable pressure. The hydrogen specialist has once again presented weak quarterly figures and missed market expectations. Nevertheless, Marsh continues to exude confidence and is promising changes to the hydrogen tax credit.
According to the company’s head, the US government may soon relax the rules for granting the so-called “tax credits”, both before and after the US presidential election in November. Bloomberg“We would not be surprised if there was an announcement after the Democratic convention and another announcement after the election,” the Marsh news agency quoted from a conference call.
The changes would likely include a relaxation of “additionality” rules, which require companies to use new renewable energy sources to produce green hydrogen, it said. Other changes could include the use of nuclear power plants and hydroelectric dams for hydrogen production, as well as relaxed “timing” rules, which ensure that hydrogen is produced at the same time as electricity, cited Bloomberg further.
Operational development disappointing
The relatively young hydrogen industry is dependent on political support. But whether it’s tax breaks or the targeted loan from the US Department of Energy: Plug Power simply doesn’t have its margins under control, as the second quarter figures have shown once again (DER AKTIONÄR reported). Analyst Ameet Thakkar of BMO Capital Markets has already reacted to the Q2 disillusionment and cut the target price from $2.25 to just $1.80. The vote is “underperform”.
The chart and operational development speak volumes. Investors are not grabbing a falling knife at Plug Power and are staying on the sidelines. The risks currently clearly outweigh the benefits for the hydrogen specialist.
