Plug Power (NASDAQ:PLUG) won part of a $21.8 million grant to help build a green hydrogen plant off the coast of Europe.
The company is one of nine in a consortium called Hydrogen Offshore Production Europe (HOPE). Its contribution will be a 10 MW proton exchange membrane (PEM) electrolyzer, separating hydrogen from oxygen.
Plug Power stock was trading at $9.25 per share in the pre-market this morning, June 27. That’s a market capitalization of $5.5 billion on expected 2023 revenue of $700 million.
HOPE for Hydrogen
HOPE plans to build a hydrogen production facility 1 kilometer from the port of Ostend, Belgium. The plant will produce 4 tons of hydrogen per day, compressed and delivered via pipeline. Electricity will be bought under power purchase agreements (PPAs) from windmills and solar farms. Water will come from the North Sea, desalinated and purified by evaporation. Hydrogen will be compressed at sea, then compressed further on land.
Partners include companies from France, Germany, Belgium, Portugal, Denmark, and the Netherlands. The hope is to create a profitable hydrogen economy by 2030.
For Plug Power, the deal represents another route toward green hydrogen infrastructure. The company is currently selling hydrogen from Olin (NYSE:OLN) chlor-alkali plants. It has built a factory outside Rochester, New York, to make hydrogen fuel cells.
Plug Power stock continues to face a skeptical investing public. Shares are down 48% in the last year and 26% in 2023. In the first quarter, losses increased as fast as revenue. The company had a negative cash flow of $277 million during the first quarter, ending the period with just $474 million in cash. It next reports results in August.
PLUG Stock: What Happens Next?
Turning revenue and press releases into profit remains a challenge for Plug Power. Cutting off stock options to executives hasn’t done the trick.
As of this writing, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
