Plug Power (NASDAQ:PLUG) is in the red today even after the fuel cell company announced a new order for 25-megawatt (MW) electrolyzer systems for a customer in Europe. Indeed, as part of the deal, Plug will employ five of its in-house 5 MW electrolyzer systems, designed to enhance the company’s use of green energy.
“The selection of Plug’s technology for this project serves as a clear example of our established industry expertise and proven technology,” said Plug Chief Executive Andy Marsh.
“Industry experts have highlighted the immense market potential for green hydrogen in Europe as being a key factor for reaching European Union decarbonization targets. This presents a significant opportunity for Plug, and we have the market knowledge and technology readily available to make a substantial impact.”
Plug has extensive experience with electrolyzer systems. Indeed, the company is currently working on a 100 MW electrolyzer with Galp (OTCMKTS:GLPEY), an oil and gas company based in Lisbon, Portugal. Additionally, Plug has commissioned several 5 MW electrolyzer systems for industrial uses including glass manufacturing, aluminum recycling, and steel manufacturing.
According to the press release, today’s deal will further contribute to “decarbonizing the customer’s operations.”
What Does This Mean for PLUG Stock?
Despite the encouraging nature of today’s announcement, PLUG stock is down at the time of writing, in the red about 1.5%.
Unfortunately, this only adds to Plug’s exorbitant losses this year. Just six months into 2024, PLUG is down almost 48%, even as the S&P 500 is up 15.5% over the same period.
According to David Moadel, an InvestorPlace contributor, Plug remains a cautionary investment. Moadel says Plug faces regulatory scrutiny stemming from a new conditional loan from the U.S. government. Indeed, U.S. Senator John Barrasso is even launching a probe into the Energy Department’s loan arrangement with Plug.
As such, Moadel believes it’s still too early to invest in Plug, given the company’s uncertainty and unproven nature.
On the date of publication, Shrey Dua 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.
