Plug Power Inc (NASDAQ: PLUG) is trading on gains of more than 6% this morning after the company announced that it has expanded its hydrogen supplies through a new agreement. Here’s what’s happening:
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PLUG Stock Climbs On New Hydrogen Supply Agreement
Plug Power is having a great start to the trading session after issuing a press release surrounding a hydrogen supply agreement. In the release, the company said that it had entered into a new agreement with United Hydrogen, an innovative fuel supplier.
Earlier this month, PLUG and United Hydrogen signed a 3-year reserved product supply agreement. This agreement allows Plug Power to maintain competitive pricing for its current customer base as well has provides a foundation from which to grow.
As part of the agreement, United Hydrogen has agreed to supplement Plug Power’s hydrogen delivery operation with a dedicated supply of liquid hydrogen. This will facilitate a diversified supply chain and bulster the comapny’s ability to seemlessly meet customer demand while increasing the amount of green hydrogen supplied within its network.
In a statement, Andy Marsh, CEO at PLUG, had the following to offer:
Hydrogen is, and should be, a competitive market, and it’s crucial that we continually take steps to strengthen our supply chain and identify new, exciting partners in our efforts to grow global hydrogen and fuel cell markets. United Hydrogen is one of many such partners that show us what these relationships should look like. They’re far more than just a supplier; they are a true supply chain partner in every sense. We’re already working with the United Hydrogen team in conjunction with a handful of Plug Power customers, and we couldn’t be happier with the results.
The above statement was folloed up by Brent Kosci, COO at United Therapeutics. Here’s what he had to offer:
We are very proud to be joining forces with an organization like Plug Power. Our mission has always been to achieve broad participation in the hydrogen economy through affordable, reliable production and distribution of hydrogen. I believe Plug Power shares that mission, and that they have already played a crucial role in helping to establish a competitive and commercially-viable hydrogen market that is poised for explosive growth in the years ahead.
Why This News Is So Important
At the moment, PLUG is a leader in the facilitation of hydrogen fueling in the United States. With more than 80 fueling stations, the company is capable of supporting 20 million fills into e-mobility applications.
The company’s customers are among the largest customers using liquid hydrogen in the United States Today. As a result, the company is seeing a strong shift upward in demand.
This new agreement will expand the company’s supply chain, making sure that none of these fueling stations run dry. Moreover, this creates an opportunity for expanded revenue and allows PLUG to maintain its role as a leader in the space.
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