Electric vehicle charging station Plug Power (NASDAQ:PLUG) is enjoying strong gains today after inking a new hydrogen deal with Amazon (NASDAQ:AMZN). PLUG stock is up nearly 9% today on news that it will be providing liquid hydrogen to the e-commerce giant starting in 2025.
What else do you need to know about Plug’s latest partnership?
With today’s news, Plug and Amazon are only further intertwined. Plug already has deals in place for the forklifts found in many of Amazon’s distribution centers. As part of the new agreement, Plug is giving Amazon stock options for up to 16 million shares of the company, some of which were purchased immediately.
Andy Marsh, CEO of Plug, commented on the promising deal.
“By building a complete hydrogen ecosystem from molecule to applications combined with a resilient network of green hydrogen plants around the world — we have made hydrogen adoption easy … Landing a green hydrogen supply deal with a customer like Amazon validates our multi-year investment and strategic expansion into green hydrogen. We are excited to expand our relationship with Amazon in exploring the use of other hydrogen applications, such as fuel-cell electric trucks and fuel-cell power generation stations that could provide electricity to Amazon buildings and the deployment of electrolyzers in fulfillment centers.”
Plug remains one of the few winners of the S&P 500 this year. As the premier U.S. indices suffer losses of more than 10%, Plug is actually up this year by more than 3%.
What else is going on with Plug lately?
PLUG Stock Climbs as Amazon Deal Greeted to Warm Reception
Interestingly, FiveT Hydrogen CEO Pierre-Etienne Franc had some kind words for Plug’s latest Amazon synergy. On Yahoo! Finance Live this morning, Franc discussed the green benefits of hydrogen over other renewable energy sources, as well as offered encouragement over Plug’s initiatives. He stated:
“This deal, which has been achieved with one of the leading players in the world which is Amazon, shows this technology is becoming viable, is becoming accepted as a significant substitute for fossil energies…to be looked at in context of the new Biden Inflation Reduction Act we are getting a big boost from that.”
As a result of the deal, Plug has seen renewed option interest today. Following the announcement, more than 98,000 calls of Plug options have been exchanged. In particular, Aug. 26 32-and 31-strike calls have been a popular choice of options traders.
After today, PLUG stock is hovering remarkably close to its year-long peak of $32.05, currently trading just below $30. Whether today’s news will propel the hydrogen maker to new highs remains to be seen.
On the date of publication, Shrey Dua did not hold (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.