Making progress in its push to facilitate the transition to a hydrogen economy, Plug Power (PLUG -2.26%) announced its entrance into a long-term supply and logistics agreement today. Investors, however, aren't impressed, considering details of the partnership are rather scant.
As of 12:14 p.m. ET, shares of Plug Power are down 6.2%.
While Plug Power initially made its hay by providing fuel cell systems, the company has articulated a long-term vision of diversifying its business by producing green hydrogen. The company is a little closer to realizing that plan thanks to an agreement that it announced today. Plug Power is partnering with Certarus, a deliverer of compressed natural gas and hydrogen to industrial and commercial customers, to develop a hydrogen infrastructure. Beginning in the first quarter of 2022, Plug Power will provide Certarus with up to 10 tons of green hydrogen daily, sourced from facilities in its burgeoning North American hydrogen production network, for delivery to a variety of customers, including mining, power generation, natural gas midstream, and industrial energy users.
Celebrating the partnership, Andy Marsh, Plug Power's CEO, said, "We are building out a green hydrogen ecosystem, with the goal to deliver 500 tons per day of green hydrogen by 2025 and 1,000 tons per day by 2028. The partnership with Certarus is a meaningful step in building out the green hydrogen ecosystem to serve large energy sectors and in providing Plug Power the ability to flex and scale our overall delivery capabilities."
Investors' lack of enthusiasm regarding Plug Power's deal with Certarus is hardly surprising since financial terms of the deal were nowhere to be found in the announcement of it. As a matter of fact, it was only last week that Plug Power announced another promising partnership, and investors shrugged. Shareholders recognize Plug Power as a promising growth company, but it seems that the exuberance around the stock's promise may be waning as investors look for material improvements in the company's financials -- not merely news of partnerships.