LATHAM, N.Y. - Plug Power Inc. (NASDAQ: NASDAQ:PLUG), a provider of hydrogen solutions, has secured two new contracts to supply Basic Engineering and Design Packages (BEDP) for green hydrogen projects in Europe and the U.S., totaling up to 350 megawatts (MW) of electrolyzers. This development increases the company's global BEDP contracts to 4.5 gigawatts (GW).
The recent agreements build on Plug Power's growth in the electrolyzer market, following a 500MW contract in Europe earlier this year. With the latest 350MW deal, the firm has now finalized 850MW of BEDP contracts in the last four months.
Plug Power has established itself as the only electrolyzer original equipment manufacturer (OEM) constructing green hydrogen plants in the U.S., having commissioned the nation's largest 15TPD electrolytic liquid hydrogen production plant and PEM electrolyzer deployment.
Plug's CEO, Andy Marsh, highlighted the company's half-century of experience in the electrolyzer sector and its rapid scaling across five continents. Sanjay Shrestha, Plug's General Manager of Energy Solutions and Chief Strategy Officer, pointed to the BEDP growth as evidence of the company's strong market position.
Throughout 2024, Plug Power aims to deliver an additional 40 electrolyzer systems, contributing to a cumulative total of 189MW. These systems are used globally in various sectors, including refineries and industrial processes. The company also advances large-scale projects, like a 100MW electrolyzer supply contract for a European refinery and is on track with executing the remaining 4.5GW of signed BEDP contracts.
By the end of this year, Plug is expected to become the largest provider of PEM technology in operation worldwide. The technology delivers high purity hydrogen at an operating pressure of 40bar, and the integrated approach for 1MW and 5MW systems allows for rapid installation and commissioning.
Plug Power's end-to-end green hydrogen ecosystem includes production, storage, and delivery, as well as energy generation. The company has deployed over 69,000 fuel cell systems and is the largest buyer of liquid hydrogen. With a Gigafactory for electrolyzers and fuel cells and plans for green hydrogen production plants by year-end 2028, Plug is actively working toward decarbonizing the economy.
The information in this article is based on a press release statement from Plug Power Inc.
InvestingPro Insights
Plug Power Inc. (NASDAQ: PLUG) continues to expand its footprint in the green hydrogen sector with recent contracts that bolster its position in the market. To provide a more comprehensive financial perspective on Plug Power's current situation, here are some key metrics and insights from InvestingPro:
InvestingPro Data:
- Market Capitalization: $1.65 billion
- Revenue Growth (last twelve months as of Q4 2023): 27.07%
- Price, Previous Close: $2.59
The revenue growth indicates that Plug Power is experiencing a positive trend in sales, aligning with the company's expansion in the electrolyzer market. However, the stock price reflects the challenges the company faces, as it trades near its 52-week low.
InvestingPro Tips:
1. Plug Power's stock price has experienced significant volatility, which could be attributed to concerns about the company's profitability. Analysts do not anticipate the company will be profitable this year, which is a critical factor for investors to consider.
2. On a positive note, Plug Power's liquid assets exceed its short-term obligations, suggesting a degree of financial stability in the near term. This could provide some reassurance to investors about the company's ability to meet its immediate financial commitments.
For those looking to delve deeper into Plug Power's financial health and stock performance, there are additional InvestingPro Tips available at https://www.investing.com/pro/PLUG. Currently, there are 16 more tips that provide insights into various aspects of the company's financial status and market behavior.
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