- Green hydrogen company Plug hole (NASDAQ:PLUG) today announced a major order for electrolysers for a Danish company
- This order provides up to 100,000 tonnes of renewable hydrogen each year
- That’s enough to power 15,000 heavy trucks, and apparently enough to power that stock higher today.
One of the biggest players in the market today is the hydrogen fuel cell company Plug hole (NASDAQ:PLUG) after announcing a large order. This green hydrogen company has proven a volatile bet for investors over the past year. However, this volatility is now working in favor of investors. PLUG stock shares are up 12% at the time of writing.
The big catalyst for today’s move in PLUG stock is a sizable order for a 1GW electrolyser from a Danish company H2 energy Europe. This massive electrolyser will enable offshore wind power to generate up to 100,000 tons of green hydrogen. Indeed, as the world moves towards more renewables, these contracts are likely to become larger and more consistent over time.
At least, PLUG shareholders seem to think so.
Today’s surge indicates that the market thinks this contract is indicative of what could happen for Plug Power. Let’s dive into some of the details and why investors are increasingly bullish on renewable hydrogen.
Why is PLUG stock skyrocketing today?
Looking back, it is clear that the overall market sentiment has moved in a bullish direction today. Most stocks are up, with a sea of green encompassing the market heatmap. In this environment, the companies with the greatest growth potential are often the ones that outperform the most. This is what we see today.
However, for Plug Power investors, this announcement is certainly a company-specific catalyst to consider. Plug Power’s business model is based on the increased adoption of green hydrogen globally. This electrolyser could power up to 15,000 heavy vehicles every day. This is considerable, especially considering the size of the Danish market.
It should be noted that Northern Europe has taken the lead, in many respects, on the renewable energy front. Plug Power is seeing significant traction in its core markets, suggesting that this business could be viable in North America. While the adoption of Plug Power’s services has not been as rosy as expected, some may correctly suggest that the company’s current valuation already reflects much of this bearish sentiment. As a result, for those looking for bargains, PLUG stock may be too cheap to ignore.
Right now, I think the jury is still out on the stock PLUG. This is a company that needs to gain momentum for mass market enthusiasm to grow. That said, the company is definitely moving in the right direction with today’s announcement.
As of the date of publication, Chris MacDonald had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.