Plug Power (NASDAQ:PLUG) stock remains one of the Nasdaq stalwarts after signing a deal to sell electrolyzers to Lhyfe. The new agreement with the French “green hydrogen” company continues Plug’s evolution as a producer of “turnkey hydrogen solutions for the global green hydrogen economy.” Lhyfe and Plug hope to jointly develop 300 megawatts (MW) of green hydrogen across Europe by 2025.
Plug Power saw a net loss of $173 million, or 30 cents per share, on revenue of $151 million in its most recent quarter. But PLUG stock is currently down less than 1% year-to-date (YTD). Shares opened at just over $27 today. The company currently has a market capitalization of about $16 billion on estimated 2022 revenue of $914 million.
Here’s what investors should know as PLUG stock moves higher today.
PLUG Stock and the Hydrogen Transition
Plug Power has a vision to create a future based on renewable hydrogen fuel. The company also has a deal with Olin (NYSE:OLN) to create hydrogen from its chlor alkali production process, which release hydrogen off as a byproduct.
Unlike fossil fuels, hydrogen doesn’t create carbon dioxide and other pollutants when used. This makes it an attractive fuel for use in warehouses, where forklifts must run all day in an enclosed environment.
PLUG stock jumped back in August after signing a deal with Amazon (NASDAQ:AMZN) to supply the company with green hydrogen for its warehouse operations. The deal also includes warrants for Amazon to buy up to 16 million shares of PLUG at $22.98 per share.
Hydrogen has applications outside of warehouse operations, too. Specifically, electrolyzers can be used in road trucks and electricity generation. Plug Power also sells large fuel cells to provide backup power to electric utilities. The company competes with FuelCell Energy (NASDAQ:FCEL) in this market, although FCEL stock is not faring nearly as well. The stock is currently down 28% YTD.
That said, PLUG stock is controversial on Stocktwits. Bulls argue that hydrogen is a long-term opportunity, but bears note that the company is still burning cash.
Overall, Plug Power is a long-term speculation. Hydrogen looks like an attractive way to power the world, no doubt, but it will also take years to scale up.
On the date of publication, Dana Blankenhorn held a long position in AMZN stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.