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Proton Motor Power Systems PLC (LON: PPS) share price rallied 10% higher today despite the lack of significant news from the hydrogen power company.
The last announcement from the company was the shipment of its ‘Module S8’ fuel cell by GKN Hydrogen, its international customer, to Australia.
The fuel cell storage module is destined for New South Wales, Australia, which is expected to deliver reliable energy storage compared to traditional oil generators that have caused bush fires in the past.
Proton Motor noted that it had received about 25 orders for its “PM Module 8” product, implemented in the innovative HY2 hydrogen storage system.
Investors could have been reacted to the latest announcement, which occurred on Friday last week, as evidenced by today’s rally.
PPS is not the only company playing in the hydrogen energy sector in the UK since we have other companies such as AFC Energy, ITM Power and many others also serving the sector.
Proton Motor shares have been on an extended downtrend over the past few months and is down 50.8% since January. However, the shares have recently bounced back and are now headed higher.
Still, the company is set to profit from the rising adoption of hydrogen energy as many governments set targets to be carbon neutral in future.
There is a long way to go before hydrogen power can overtake oil and other hydrocarbons as the dominant energy sources since the current technologies do not support the sustainable production of hydrogen power.
However, the future for hydrogen power companies appears quite bright, given the rising adoption of hydrogen fuel cells as a power source in rural areas that are not served by the traditional energy grid.
The bounce in PPS share price started last week, and many hope it will last for the foreseeable future.
*This is not investment advice.
Proton Motor (PPS) share price.
Proton Motor PPS share price rallied 10% to trade at 34.10p, rising from Friday’s closing price of 31.00p.
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