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Hydrogen fuel cell systems developer Plug Power (PLUG 5.13%) was an alt-fuel stock of choice among investors on Tuesday, rising to close more than 5% higher in price. The company benefited from the announcement of a new supply deal, plus selective optimism blanketing stocks in or adjacent to the next-generation vehicle space.
Plug Power announced that it has secured a new delivery order to supply oil and natural gas pipeline company TC Energy. The deal will see Plug Power deliver two 30-tons-per-day hydrogen liquefaction systems to its customer. These deliveries will be made in the second and third calendar quarters of this year, and will serve TC Energy properties that have yet to come onstream.
Plug Power did not provide any financial details of this arrangement.
The company did quote CEO Andy Marsh as saying that it “validates our investment in Plug’s liquefaction capabilities as part of our vision to build an end-to-end green hydrogen solution.”
“We share TC Energy’s commitment to providing sustainable and secure energy, and together we look forward to accelerating the growth of the hydrogen market,” Marsh added.
When a company fails to provide the financial particulars of a new deal, it’s very hard to gauge how beneficial the arrangement might be. That obviously didn’t concern Plug Power investors in this case, though, and that’s understandable. The TC Energy partnership shows that the company has a compelling product with those hydrogen liquefaction systems, and has enough sales and marketing moxie to rope in well-capitalized customers.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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