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Jan 6, 2025
Hydrogen Finally Gets A Price Tag: S&P 500 New Energy Plays Soar Along With This Amazon Vendor
The U.S. Treasury Department and IRS have revised their rules for hydrogen production tax credits, causing significant movement in new energy stocks, such as S&P 500 nuclear stocks Constellation Energy and Vistra, and Amazon supplier Plug Power.
The final rules now provide a clean hydrogen tax credit of up to $3 per kilogram based on carbon emissions, encouraging investments in clean hydrogen production. Consequently, stocks like Plug Power surged, reflecting optimism in the hydrogen market. Plug Power received a $1.6 billion loan from the U.S. Department of Energy and has started delivering green hydrogen to major clients like Amazon and Walmart. The revised rules also allow nuclear power and natural gas producers to qualify for these substantial credits, boosting their stocks. This includes companies in the small modular reactors (SMRs) sector, showing a positive market response to the new regulation. Read more.