Plug Power PLUG Stock News

Plug Power Inc (NASDAQ: PLUG) is running for the top in the market this morning, gaining more than 20% early on. The gains come after the company announced the completion of an acquisition. Here’s what’s going on:

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PLUG Stock Rockets On Completed Acquisition

Plug Power said, in a press release this morning, that it has completed the acquisition of United Hydrogen Group and Giner ELX. In the release, the company said that these acquisitions are in line with its vertical integration strategy in the hydrogen business laid out in September of last year.

Importantly, these plans, if achieved, will mean that PLUG will have more than 50% of the hydrogen used green by 2024. Importantly, the work the company is doing will enhance its position in the hydrogen industry with capabilities in generation, liquefaction and distribution of hydrogen fuel complementing its industry-leading position in the design, construction, and operation of customer-facing hydrogen fueling stations.

All in all, the work that the company is doing will establish a clear pathway for PLUG to transition from low-carbon to zero-carbon hydrogen solutions.

As a result of the acquisition announced today, the company said that it is raising its financial targets. By the year 2024, the company expects to achieve $1.2 billion in revenue, $210 million in operating income, and $250 million in adjusted EBITDA.

Imporantly, United Hydrogen is one of the largest privately held merchant hydrogen producers in North America. The company has the ability to produce 6.4 tons of hydrogen daily and has plans to increase capacity to 10 tons daily in the near future.

Moreover, ELX includes one of the most experienced teams in the world in PEM electrolysis. Many of its team members have worked in the decade for two decades or more.

In a statement, Andy Marsh, CEO at PLUG, had the following to offer:

Plug Power is working to build the modern clean hydrogen economy. Every decision we make is with an eye to the future, not the past. This closely aligns with the efforts that companies like United Hydrogen and Giner ELX have made to secure broad participation in the hydrogen economy, and to achieve the objectives of a clean environment and reduced dependence on foreign oil. We welcome these organizations into the Plug Power family where, as a team, we can accelerate the adoption of low carbon and zero carbon hydrogen on a global scale.

This Is Big News

Plug Power has been working to become the leader in the hydrogen space for some time, and has been very successful in the process. Now, with these acquisitions, the company is only further solidifying its position and setting the stage for compelling growth ahead.

All in all, PLUG is not only showing that it’s working toward its goals, it is showing that it is quickly making big moves that will allow it to achieve them. As such, this stock should be watched closely.

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