Shares in US-based FuelCell Energy soared on Friday after the US Department of Energy unveiled a fresh round of funding aimed at accelerating hydrogen fuel cell development. The stock climbed more than 15% in early New York trading, reflecting renewed investor appetite for clean energy plays tied to government support.
The move comes as part of a broader push by the Biden administration to bolster domestic hydrogen production, with the DoE earmarking additional grants for projects that reduce the cost of fuel cell manufacturing. FuelCell Energy, which develops stationary fuel cell power plants, is among the companies expected to benefit from the initiative.
Across the Atlantic, London's FTSE 100 edged up 0.3% to 8,245 points, while the FTSE 250 added 0.2%. Clean energy stocks in the UK, including Ceres Power and ITM Power, saw modest gains of between 1% and 2.5%, tracking the positive sentiment from the US. However, analysts cautioned that the rally was largely driven by policy news rather than fundamental changes in the sector's outlook.
“This is a classic case of policy-driven momentum,” said a senior energy analyst at a London-based investment bank. “While the US funding is welcome, UK-listed hydrogen companies remain dependent on domestic support mechanisms, which have been slower to materialise. Investors should view today's moves as a short-term sentiment boost rather than a structural shift.”
For UK investors, the direct impact is limited given that FuelCell Energy is listed on the Nasdaq. However, pension funds with exposure to US clean energy indices may see a small tailwind. The broader hydrogen sector remains volatile, with long-term prospects tied to government subsidies and technological cost reductions.