BLOCK(SQ) MarketBeat·2024-12-02 13:00Core Insights - The demand for electricity is expected to increase significantly due to factors such as artificial intelligence, economic growth, and weather-related events [1] - Green hydrogen is seen as a potential clean energy solution, but its commercialization is hindered by the need for industry subsidies and technological advancements [2][3] - The Trump administration's approach to green hydrogen may not be as detrimental as anticipated, with potential innovations in the sector that could attract political support [3][4] Green Hydrogen Market - McKinsey has reduced its U.S. green hydrogen forecast for 2030 by 70%, highlighting the challenges in scaling this technology without subsidies [2] - The current alternative to green hydrogen is hydrogen produced from natural gas, which is cheaper and poses a challenge for the green hydrogen industry [5] - Companies like FuelCell Energy are exploring opportunities in markets with higher natural gas prices, such as South Korea, where they have significant operations [6] Company Analysis - FuelCell Energy's stock is currently priced at 5.45 to 19.17 [5] - Bloom Energy has secured a deal with American Electric Power to supply up to one gigawatt of fuel cells, marking a significant commercial procurement in the sector [8] - Despite disappointing earnings, analysts are optimistic about Bloom Energy's future, raising price targets in light of the AEP deal [9] Investment Considerations - Plug Power's stock is currently at 4.52, but it has faced declining revenue and negative earnings per share [12][13] - The hydrogen sector is viewed as a long-term investment opportunity, with potential for significant returns if hydrogen becomes a viable alternative to battery electric vehicles [14] - Analysts suggest caution with Plug Power due to high short interest, indicating a need for careful entry points in trading [14]