10 Best Green Energy Penny Stocks to Buy Now

3. Plug Power (NASDAQ:PLUG)  

Number of Hedge Fund Holders: 15  

Market Capitalization as of September 4: $1.56 Billion  

Plug Power (NASDAQ:PLUG) specializes in green hydrogen production and fuel cell solutions. The company has an integrated product portfolio that includes electrolyzers, hydrogen fuel cells, and hydrogen infrastructure solutions. Plug Power (NASDAQ:PLUG) has signed agreements with major players such as Nikola Corporation and has already deployed 72 hydrogen-powered trucks.

Plug Power (NASDAQ:PLUG) is expanding its green hydrogen production capabilities and is constructing a new hydrogen plant in Louisiana which is expected to be completed by the end of 2024. The company also plans to construct two additional plants in Texas and New York, and aims to become one of the largest green hydrogen producers in the United States. The company’s new facilities are supported by a $1.6 billion loan from the U.S. Department of Energy, which enhances the company’s ability to scale production and improve margins.

Plug Power (NASDAQ:PLUG) was recognized for the new green hydrogen production tax credit of $2.60 per kilogram for green hydrogen. As of Q2, the company produces green hydrogen at a cost of $4 to $5 per kilogram and sells it for $6 to $7 per kilogram. The new tax credit would lower the company’s cost by up to $3 per kilogram.

In addition to hydrogen fuel production, Plug Power (NASDAQ:PLUG) has seen substantial growth in its electrolyzer business. In Q2, the company generated $15 million in revenue from electrolyzers, a significant increase from $7 million in the same period the previous year. Management estimates $320 million in revenue from electrolyzer sales over the next two years.

Plug Power’s (NASDAQ:PLUG) cryogenic equipment is critical for hydrogen storage and transportation. Plug Power (NASDAQ:PLUG) expects to generate $72 million in revenue from cryogenic equipment and other related technologies in the next year.

Plug Power’s (NASDAQ:PLUG) expansion into green hydrogen production, supported by growing demand, favorable government policies, and strong growth in its electrolyzer business, positions the company for long-term success. Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $4.25, which represents an 85% upside potential from its current level. As of the second quarter, the stock is held by 15 hedge funds and the stakes amount to $10.78 million.