Brookfield Renewable (NYSE:BEP) (NYSE:BEPC) has agreed to supply Plug Power (NASDAQ:PLUG) with 100% of the renewable energy needed to energize its green hydrogen plant. The facility will be one of the first industrial-scale projects in North America.
The power supply deal with Brookfield Renewable will enable Plug Power to produce 10 tons of liquid hydrogen per day from emissions-free renewable energy. Brookfield will sell the power from its existing portfolio of renewable energy assets in North America. The agreement helps advance Plug Power's goal of producing more than 50% of its hydrogen from renewable sources by 2024.
The two companies are also discussing a broader relationship to pursue other green hydrogen solutions. "We are excited to be partnering with Brookfield Renewable, a global leader in renewable generation, and anticipate opportunities to build upon this relationship in the coming years," stated Plug Power CEO Andy Marsh in the press release announcing the deal. He also noted that "this marks important progress in our steady march to achieve our overall hydrogen strategy of building green liquid hydrogen generation facilities with strategic partners in the U.S. and globally thereafter."
Plug Power anticipates that its first green hydrogen plant will be part of a network of facilities across the continent. That will help the company achieve its mission to decarbonize the transportation and logistics industries through wider use of green hydrogen. Many industry experts view that fuel as one of the critical components needed to have a zero-carbon economy in the future.