Latham, New York-based Plug Power (NASDAQ:PLUG) is a well-known hydrogen fuel cell manufacturer. The company’s investors have struggled with share-price volatility for months. However, PLUG stock is powering higher today in the wake of a major deal with a famous U.S. retail store chain. Reportedly, Walmart (NYSE:WMT) is seeking to incorporate alternative zero-carbon energy sources throughout its supply chain. Of course, Walmart can’t be expected to achieve this alone — and Plug Power is evidently eager to help.
According to a fresh press release, Plug Power announced an agreement with Walmart to “deliver up to 20 tons per day of liquid green hydrogen to power material handling lift trucks across Walmart distribution and fulfillment centers in the U.S.” This is Plug Power’s first green hydrogen supply contract. Hence, it is a milestone moment for both Walmart and Plug Power.
As writer/reporter Sabrina Escobar explained, green hydrogen is “produced through the electrolysis of water with electricity generated from zero-carbon sources.” In other words, it is among the cleanest energy sources available today.
Midday on Apr. 19, PLUG stock was up around 10%. So, the stubborn $30 resistance level could be broken in the near future. Will the enthusiasm last, though? There is no reason why the bullish momentum shouldn’t persist for a while. Jeff Smith, senior director of Supply Chain Maintenance Services at Walmart, cited the company’s “goal of zero emissions by 2040.” Therefore, Plug Power could be Walmart’s green-power partner for quite a long time.
Meanwhile, Plug Power is currently targeting 70 tons per day (TPD) of green hydrogen production by end of 2022. The company also claims to be on track for 500 TPD of green hydrogen production in North America by 2025.
Thus, we’re witnessing a collaborative clean-fuel effort between two ambitious companies. It is good news for the green-energy movement — no doubt about that. Yet, it is also terrific news for PLUG stock investors. This is a great time to take a long position. The outlook is definitely bullish now and $30+ is practically a done deal at this point.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.