Enthusiasm for Plug Power's (PLUG -3.83%) prospects in the U.S. has ramped up recently thanks to the passage of the Inflation Reduction Act, which includes significant support for green energy, but it is news out of France that is sending the hydrogen fuel cell company's stock higher Thursday. Lhyfe, a producer and supplier of renewable green hydrogen for European markets, has placed an order for 10 of Plug Power's electrolyzer systems, and the market is taking notice.
As of 11:59 a.m. ET, shares of Plug Power were up by 2.3%.
Lhyfe's order for 10 5-megawatt (MW) electrolyzer systems is Plug Power's largest-ever multisite electrolyzer order from a European customer. In total, the systems, which Lhyfe will use at multiple facilities throughout Europe, have a daily production capacity of 10 tons.
According to Plug Power CEO Andy Marsh, the deal highlights how his company is "moving quickly to deliver on a shared ambition with Lhyfe to reduce carbon emissions in Europe's mobility sector at scale. Renewable green hydrogen demand will only increase as both the private and public sectors seek to decarbonize operations to reach sustainability goals as well as improve energy security."
Plug Power and Lhyfe previously signaled their interest in partnering together in October 2021, when they announced a plan to collaborate on developing green hydrogen production plants throughout Europe.
The market greeted the news of Plug Power's deal positively Thursday morning. Those familiar with this hydrogen company know that's not unusual -- the market usually celebrates its deals. But they also may be aware that there's a caveat. Management offered investors no insight into whether the deal will move the needle for Plug Power. Until the financial details are made clearer, investors would be best off watching this play out from the sidelines.