FuelCell, Plug Power Hammered As Texas Governor Blames Renewables For Electricity Crisis

Shares of clean energy manufacturing companies FuelCell Energy Inc FCEL and Plug Power Inc PLUG lost 16.55% and 10.67%, respectively, on Thursday as Texas Gov. Greg Abbott continues to call into question the reliability of renewable energy.

What Happened: Abbott has said fossil fuels should take precedence over renewables as the state stares down a power crisis that has left many residents without heat during a brutal winter storm.  

One of Abbott’s main arguments has been that renewable energies are anything but reliable during the fallout of extreme weather conditions.

See also: Best Energy Penny Stocks

Abbott said in an interview Wednesday with Sean Hannity that losses in wind and solar energy “thrust Texas into a situation where it was lacking power on a statewide basis.”

When asked about policy, Abbott continued that “the Green New Deal would be a deadly deal for the United States of America.

"It's just foolish to think we can disband the use of fossil fuels and have a safe and comfortable nation," Abbott said. 

Whether investors believe the electricity crisis in Texas is a long-term fade on renewables and a nod to the importance of fossil fuels remains to be seen.

As the crisis in Texas plays out, here are four stocks to watch as the fallout from the Texas winter storm and electricity crisis plays out.

About FuelCell, Plug Power: FuelCell Energy designs manufactures, sells, installs, operates, and services fuel-cell products, which efficiently convert chemical energy in fuels into electricity through a series of chemical reactions.

The company’s systems are catered to municipalities, universities, government entities and a variety of industrial and commercial enterprises.

Plug provides hydrogen fuel cell turnkey solutions for the electric mobility and stationary power markets in North America and Europe.

The company garnered an abundance of attention from investors in 2020 for its GenDrive system, a hydrogen-fueled PEM fuel cell system that provides power to material handling electric vehicles.