Green hydrogen was once a highly sought-after space, with Plug Power (NASDAQ:PLUG) being seen as a key beneficiary of ramped-up government spending on clean energy. Lately though, while there has been some progress on this front, investors have mostly been in selling mode when it comes to this green energy stock. In fact, shares of PLUG stock have plunged nearly 50% on a year-to-date (YTD) basis alone.
That said, PLUG stock is on the move higher today, surging more than 2% in the afternoon session. This move comes after the company announced via a press release that it has received certification for commercial sales of its proprietary electrolyzer systems in South Korea. Additionally, the company will be unveiling “25 hydrogen fueling stations across South Korea” via a joint venture alongside a hydrogen-powered bus.
These are the sorts of announcements investors have been waiting for. Let’s dive into this news, today’s move higher and whether the momentum can continue moving forward.
PLUG Stock Surges on Key Announcement
This announcement is certainly a big deal for the green energy player. Having its first international performance certification in South Korea cements Plug Power’s status as a global player in its field. Accordingly, the company shouldn’t be viewed as a pure play on the U.S. market alone, although that is where Plug Power is looking to make significant inroads over time.
Notably, the company’s gigafactory production plans have also been approved, in collaboration with Korean Gas Safety. Investors will certainly want to keep an eye out for developments on this front, as the company looks to ramp up its revenue growth and move toward breakeven.
Still an unprofitable company, Plug Power is going to need to see more similar announcements in order for investors to jump aboard in a big way. But certainly, today’s news is a big step forward for the company and PLUG stock.
On the date of publication, Chris MacDonald 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.
