What happened

On a day when markets are generally in the red, investors are propelling shares of Plug Power (PLUG 5.69%) higher. Fuel-cell investors are clicking the buy button today in response to the company's news that it's partnering with New Fortress Energy (NFE -0.47%) on a green hydrogen project.

The hydrogen specialist saw its stock bound more than 9% higher on Tuesday, resulting in shares closing at a level they hadn't reached since early May. As of 1:53 p.m. ET on Thursday, shares of Plug Power are up 2.3%.

So what

Plug Power and New Fortress Energy (NFE) announced that they will collaborate on developing a 120-megawatt green hydrogen production plant near Beaumont, Texas. With the help of Plug Power's fuel cells, the facility is expected to achieve daily green hydrogen production of more than 50 tons.

Addressing the partnership, Andy Marsh, Plug Power's CEO, said, "Plug's decarbonization goals and NFE's energy transition goals are strongly aligned, and our partnership has strengthened at a pivotal time for the green hydrogen industry." Marsh added that the intent is to replicate the facility at other locations across the country.

Plug Power has targeted daily green hydrogen production of 500 tons from its assets in North America and 1,000 tons per day globally by 2028.

Now what

Plug Power's news today is an encouraging sign that the company is making steady progress toward achieving its green hydrogen production targets.

But it's important for investors to recognize that financial terms of the deal were not disclosed, resulting in the question of how material this deal will be for Plug Power's financials -- a question that often arises when Plug Power announces deals of this sort. Fortunately for hydrogen-oriented investors, Plug Power isn't the only game in town.