By Sam Boughedda
Investing.com — Plug Power Inc (NASDAQ:PLUG) told investors Tuesday it has signed a long-term supply and logistics agreement with Certarus, a compressed natural gas transporter.
The companies want to enhance the green hydrogen supply chain in North America. Plug Power will provide Certarus up to 10 tons of green hydrogen each day from its hydrogen production network, with initial deliveries expected in the first quarter of 2022.
Certarus' fleet of compressed gas delivery trailers will then move the hydrogen from production locations to Plug Power's and Certarus' end users, including mining, power generation, natural gas midstream, and industrial energy firms. In addition, the companies will partner on the supply of equipment from Plug Power.
The companies explained that their goal is to make hydrogen fuel a more convenient option for businesses trying to reduce carbon emissions and achieve ESG goals.
The goal is "to deliver 500 tons per day of green hydrogen by 2025 and 1,000 tons per day by 2028," said Andy Marsh, CEO of Plug Power. "The partnership with Certarus is a meaningful step in building out the green hydrogen ecosystem to serve large energy sectors and in providing Plug Power the ability to flex and scale our overall delivery capabilities."
The announcement has been unable to help Plug's share price, which has fallen for the last three days and is currently trading down 5%.