What happened
Shares of alternative energy company Plug Power (PLUG -1.25%) popped almost 13% higher to start the trading week. As of 1 p.m. ET, Plug stock was still holding onto a gain of 12.4%.
So what
The pop came after the company announced several new electrolyzer orders that each will take Plug Power into new sectors of the market for hydrogen fuel. The orders could signal the opening of new potential customers for Plug Power. The company plans to fill three new orders for its 5 megawatt (MW) containerized electrolyzer modules for the aluminum, steel, and glass manufacturing industries, respectively, in Europe.
Now what
Units from two of the orders will produce hydrogen to help supply fuel for a Swedish glass manufacturer and German steelmaker. Ardagh glass promotes itself as a sustainable packaging company, and by the end of the year expects to replace natural gas fueling its process with green hydrogen made using Plug's modular unit. Similarly, ArcelorMittal intends to take a step toward green steel production using the power generated from two of the Plug Power electrolyzers for a portion of the steelmaker's needs. A unit of aluminum giant Norsk Hydro will also use the equipment to replace natural gas used for aluminum recycling in Norway. That unit is expected to be operational by the middle of next year.
In describing the importance of the new orders, Plug CEO Andy Marsh stated, "Plug is breaking new ground with this series of industry firsts that validate our vision to scale the green hydrogen economy." Marsh also said the units are compact and easy to install, hoping to entice other manufacturing facilities to move to decarbonize existing processes.
The news is welcome for investors wanting to see Plug Power expand the global hydrogen economy. But Plug Power has yet to turn a profit, and investors should want to see more of a trend toward using hydrogen as a fuel. For now, however, it is welcome news and has the stock being bid higher today.
