Pioneering in the hydrogen fuel cell tech for e-motors, Plug Power (NASDAQ:PLUG) is a game changer in the transportation sector. Despite concerns over its viability due to significant cash burn, the PLUG stock remains a speculative green energy gamble.
The company has expanded hydrogen production, with plants in Georgia and Tennessee at full capacity and another in Louisiana expected to be completed by Q3 2024.
To improve finances, PLUG implemented a plan to cut operational expenses by $75 million annually, though it recently reported a substantial net loss. Despite risks, the potential upside for the PLUG stock could be significant.
New Hydrogen-Powered Trucks on the Way
Plug Power developed a Class 6 hydrogen-powered fuel cell truck for middle-mile deliveries, capable of traveling up to 500 miles using ProGen fuel cell technology. The vehicle, which doesn’t require a commercial driver’s license, is in final integration and testing, with operational pilots starting in summer 2024. This phase will gather real-world data and feedback from key logistics customers.
In addition, Plug CEO Andy Marsh stated that the company leads in hydrogen fuel cell solutions for electric vehicles. The ProGen engine, based on decades of experience, provides superior range, rapid fueling, cargo optimization, and power density for middle-mile delivery.
Plug Seals Loan Guarantee with US DOE
The U.S. Department of Energy committed to providing $1.66 billion in loans to Plug Power for six hydrogen production. The DOE said the company plans to build clean hydrogen facilities to supply the U.S. consumer base.
The hydrogen fuel will power most electric vehicles in different sectors. This will also ease greenhouse gas emissions by 84%, better than conventional hydrogen systems.
Not only are hydrogen fuel cells helpful for the environment, but it is also a better option to boost efficiency. Its zero emissions and increased productivity make it faster than conventional batteries. Major corporations like Home Depot (NYSE:HD) and Amazon (NASDAQ:AMZN) use Plug’s hydrogen fuel cells in their warehouses and distribution centers.
Plug operates the most extensive proton exchange membrane electrolyzer system in the U.S. at its Georgia plant, producing 25 tons of liquid hydrogen daily.
PLUG Looks Like a Speculative Buy
In April, Plug Power announced its green hydrogen plants in Georgia and Tennessee reached maximum capacity, producing 10 and 15 tons per day, respectively. A new plant in Louisiana is expected next quarter.
Moreover, the company partnered with Basic Engineering and Design Packages (BEDP) in the U.S. and Europe, increasing its BEDP portfolio to 4.5 gigawatts.
The company also believes to reach $6 billion in revenue in the next four years and $30 billion in six years. Plug Power has a $2 billion market cap, and achieving $55 billion by 2030 could be possible. This signals a strong potential for investors in the long-run.
On the date of publication, Chris MacDonald 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.
