Fuel cell stocks are facing challenges as surging Treasury yields raise financing costs for capital-intensive clean energy projects. Notably, FuelCell Energy (NASDAQ: FCEL) is down 6%, Plug Power (NASDAQ: PLUG) down 4%, and Bloom Energy (NYSE: BE) down 8%. The Global X Hydrogen ETF (NASDAQ: HYDR) has also dropped 4%.
The 10-year Treasury yield has reached 5.11%, its highest since 2007, making funding for fuel cell and hydrogen projects more competitive. Companies need significant capital upfront, and higher rates could delay project financing and economic benefits despite persistent demand for clean energy.
FuelCell Energy continues to expand its pipeline with a $1.3 billion backlog but reported a 29% revenue drop year-over-year. Plug Power shows some improvements in operational performance, while Bloom Energy benefits from strong demand from data centers, reporting significant revenue growth.
Overall, investors should monitor financing conditions and company performance closely as higher interest rates could affect project economics and valuations in the clean energy sector.
