Later this week, the U.S. government is set to announce the winners of federal grants totaling $7 billion for regional hydrogen projects, according to Reuters. One of the contenders is Plug Power’s (NASDAQ:PLUG) project, in collaboration with multiple states in New York.
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E-commerce major Amazon (NASDAQ:AMZN) is also in the race with a public-private partnership in California. The project also includes industrial gas provider Air Products and Chemicals (NYSE:APD). The Regional Clean Hydrogen Hubs Program will fund 10 regional hubs in the U.S., and the stakes are high.
The funding can potentially boost hydrogen production in the country to nearly 10 million metric tons by 2030, as reported by Bloomberg. The U.S. government aims to lower the costs of hydrogen production to meet its climate goals, which could help drive the widescale adoption of hydrogen.
Is PLUG a Good Stock to Buy?
The upcoming announcement on Friday could boost the fortunes of major names in the hydrogen sector. After closing nearly 12% higher yesterday, Plug Power shares are up a further 3% in the pre-market session today. Meanwhile, the Street sees a massive 150.6% potential upside in PLUG stock, based on an average price target of $17.94 and a Moderate Buy consensus rating.
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