Quick Read
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The 10-year Treasury yield hitting 5.11%, a 17-year high, sent FuelCell Energy down 6%, Plug Power down 4%, and Bloom Energy down 8% Thursday.
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Bloom Energy’s $1.065 billion Q2 revenue and guidance raise to $4.2 billion contrast sharply with FuelCell’s 29% revenue drop and $45 million quarterly loss.
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Fuel-cell stocks are under pressure Thursday as a sharp rise in long-term Treasury yields adds another challenge for capital-intensive clean energy projects. FuelCell Energy (NASDAQ:FCEL) stock is down 6% to $16.07, while Plug Power (NASDAQ:PLUG) stock is falling 4% to $1.96, and Bloom Energy (NYSE:BE) stock is down 8% to $254.53.
Notably, the Global X Hydrogen ETF (NASDAQ:HYDR) is down 4% to $42.96. For the broader market context, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.51% to $763.90.
The moves come as the 10-year U.S. Treasury yield reaches 5.11%, its highest level since 2007. Higher borrowing costs can make expensive fuel-cell, hydrogen and other clean-energy projects harder to finance, particularly when developers and customers need substantial upfront capital before generating returns.
Treasury Yields Add Pressure
The 10-year Treasury yield matters for FuelCell Energy, Plug Power and Bloom Energy because higher risk-free yields can raise the hurdle rate for private investment in capital-intensive energy infrastructure. When Treasury yields rise sharply, projects involving fuel-cell systems, hydrogen production and related equipment can face more competition for financing from relatively safer fixed-income assets.
FuelCell Energy, Plug Power and Bloom Energy also operate in markets where customers may need to commit substantial amounts of capital before new energy systems begin producing economic benefits. Higher interest rates can therefore influence project timing and financing decisions even when the underlying demand for cleaner and more reliable power remains intact.
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