What happened
Plug Power (PLUG 1.26%) shares were powering higher on Thursday morning. Shares jumped as much as 11.3% before paring some of those gains. As of 11:47 a.m. ET, Plug stock was up by 8.4% for the day.
So what
The stock had already been marching higher over the past several months, but a pair of news releases over the last several days has continued to give the stock its recent momentum. Today, Plug announced a large new order for its hydrogen electrolyzers to be used for an oil refining project in Europe.
Earlier this week the company separately announced it would be supplying electrolyzers for a green hydrogen project in Australia.
Now what
Plug's most recent announcement was to supply 100 megawatt (MW) electrolyzer stacks to replace existing equipment and generate 43 tons of green hydrogen per day. It is designated as green hydrogen because it will use 100% renewable energy to power the hydrogen production project.
The scale of the project is what is likely driving shares higher today. For perspective, Plug said it will supply the equipment from its facility in Rochester, New York, which has the capacity for 100 MWs per month of electrolyzer stacks.
Earlier this week the company announced a different supply deal for two 5 MW electrolzyers for green hydrogen projects in Australia. But the new deal that will fill a full month of production capacity at its U.S. facility is what has investors excited now.
Plug Power is still working to become profitable, and investors should recognize the risks involved with owning the stock. But if the use of hydrogen as a fuel continues to grow, Plug Power is well positioned to benefit over the long run.
