Plug Power’s (PLUG) stock rocketed on Tuesday after announcing that it has begun producing liquid green hydrogen at its Georgia plant.
Shares in the company surged 30.99% to $3.72 apiece on January 23, with an additional 1.61% after-hours gain to $3.78. Analysts expect the stock to extend its win streak to four days with a 1.85% lift to $3.99 per share in the coming trading day.
The hydrogen fuel cell firm added 53.72% in the past three days after shedding -44.37% in a seven-session losing streak. However, it is still down -17.33% from the last market session of 2023, mainly due to liquidity issues.
Since November, Plug’s stock has tumbled as funding problems cast doubt on its ability to sustain operations. Plug CEO Andrew Marsh said they have finalized a $1.60 billion loan from the US Department of Energy (DOE).
Marsh added that the firm will use the loaned funds to acquire, build, and develop up to six hydrogen plants. More production facilities will accelerate the technology’s deployment in the US while significantly reducing costs.
With a daily capacity of 15.00 tons of liquid green hydrogen, the Georgia plant is the largest in North America. The factory generates enough fuel to power 15,000 forklifts per day.
Liquid Green Hydrogen Might Support Plug
The Latham-headquartered company struggled in 2023, with a gross margin of -69.00%, further falling from -24.00% the year before. Plug also reported a slight 5.00% year-over-year revenue growth to $199.00 million and a net loss of -$726.40 million.
In November, the alternative energy firm told investors it might not have enough funds to continue operating for the next 12 months. With the DOE loan, Plug has enough to stay in business and achieve expansion targets this year.
Furthermore, its Liquid Green Hydrogen arm may enable it to turn a profit if the business grows quickly enough. Industry watchers said the demand for hydrogen will sharply increase as companies move towards their net-zero emission targets.
