A few stocks were on the move on Tuesday, but one notable stand out was one of the most popular green energy companies out there. Plug Power (NASDAQ: PLUG) was up after announcing a massive partnership with Walmart (NYSE: WMT). The massive retailer will start buying Plug Power’s liquid green hydrogen. Although the arrangement isn’t necessarily gigantic for Walmart, it could be the start of a much bigger deal in the future, which would be massive for Plug Power.
Walmart confirmed that it would be purchasing up to 20 tons per day of liquid green hydrogen from Plug Power, mainly to power the retailer’s lift trucks across various fulfilment centers in the country. Plug Power said that the deal marked the first major green hydrogen supply contract, with more potential deals coming in the future.
“Walmart has been an early adopter of innovative hydrogen and fuel cell technology for over a decade, and our hydrogen-powered solutions offer a tool to enhance productivity improvements for Walmart’s operations,” said Andy Marsh, CEO of Plug Power. “Now our green hydrogen solutions will provide Walmart with the ability to achieve significant carbon reduction. We are honored to expand our relationship with Walmart and realize our shared vision for a green hydrogen future.”
While big news, Walmart’s relationship with Plug Power has been ongoing for a while., The retailer first worked with Plug back in 2012 to help expand the company’s hydrogen fuel cells through its facilities. This started with a 50-fleet pilot project before expanding to a fleet of over 9,500.
Plug Power is also poised to benefit as Europe attempts to wean itself off of Russian energy. However, new green projects still are going to require a lot of capital expenditure, and the transition to Russian fossil fuels isn’t going to change anytime soon. If anything, it will likely be a long-term catalyst for the broader green energy sector in general.
Shares of Plug Power were up around 9.8% over the course of the day. Despite today’s jump, Plug has been down a bit since the year started, mainly as EV-related stocks have been in the midst of a selloff. Even compared to a year ago, Plug Power is up barely 11%.
Despite this, most analysts remain very optimistic about Plug. Around 18 analysts have a “buy” rating, while just seven are neutral and none are bearish.
Plug Power Company Profile
Plug Power Inc is an innovator of modern hydrogen and fuel cell technology. It has revolutionized the material handling industry with its full-service GenKey solution, which is designed to increase productivity, lower operating costs and reduce carbon footprints in a reliable and cost-effective way. The company’s GenKey solution couples together all the necessary elements to power, fuel and serve a customer. With proven hydrogen and fuel cell products, the company replaces lead acid batteries to power electric industrial vehicles, such as the lift trucks customers use in their distribution centers. Its ProGen platform of modular fuel cell engines empowers OEMs and system integrators to adopt hydrogen fuel cell technology. – Warrior Trading News
