Plug Power Inc. (PLUG) is experiencing a premarket surge in its share price thanks to a substantial 25-megawatt (MW) order for its proton exchange membrane (PEM) electrolyzer systems. This order comes from a joint venture between oil giants BP p.l.c. (BP) and Iberdrola S.A. (IBDSF), known as Castellón Green Hydrogen S.L. The project, which will utilize five 5 MW containerized PEM electrolyzers, aims to significantly reduce carbon emissions at BP’s Castellón refinery in Valencia, Spain. The estimated annual reduction in CO2 emissions is a substantial 23,000 tons.
Plug Power’s electrolyzers will play a crucial role in this project, led by BP and Iberdrola, to produce green hydrogen. This green hydrogen will replace a portion of the refinery’s current gray hydrogen, which is generated from natural gas. The partnership with BP marks the beginning of a long-term collaboration aimed at decarbonizing operations, with potential expansion up to 2 gigawatts of electrolysis capacity.
Plug Power CEO Andy Marsh expressed enthusiasm for this project, stating, “The selection of Plug’s technology for this project serves as a clear example of our established industry expertise and proven technology.” He further emphasized the immense market potential for green hydrogen in Europe, highlighting its crucial role in achieving the European Union’s decarbonization targets. Marsh believes this presents a significant opportunity for Plug Power, with the company possessing the market knowledge and technology to make a substantial impact.
This recent win for Plug Power follows other notable successes in the green hydrogen space. Earlier this month, the company secured a contract to support 25 MW of PEM electrolyzers for H2DRIVEN’s green methanol project in Portugal. The contract involves providing technical evaluation phase support for 25 megawatts of PEM electrolyzers during the Front End Engineering Design process for the project. Additionally, Plug Power received a $10 million grant from the U.S. Department of Energy to scale its HYPER-Fuel project, which focuses on advanced hydrogen refueling infrastructure for medium and heavy-duty vehicles. This funding is part of the DOE’s $62 million investment in 20 projects across 15 states aimed at advancing next-generation clean hydrogen technologies.
Investors interested in gaining exposure to Plug Power can do so through various exchange-traded funds (ETFs), including the Global X Hydrogen ETF (HYDR) and the ETF Series Solutions Defiance Next Gen H2 ETF (HDRO).
As of the last check on Thursday, PLUG shares were up 5.24% at $2.21 in premarket trading. This news underscores the growing demand for green hydrogen solutions and Plug Power’s position as a key player in this burgeoning industry.
