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Plug Power Shoots Higher After $172 Million Hydrogen Fuel Cell Deal

The hydrogen fuel cell maker touts the deal with what it called a 'material handling' company as a key step toward hitting its 2024 goal of $1 billion in billings.

Shares of Plug Power (PLUG) - Get Plug Power Inc. Report surged Monday after the hydrogen fuel cell maker, which helps power fork lifts and other machines, announced a $172 million deal with a "Fortune 100" company.

Plug Power's stock price shot 14.78% higher to $3.71 a share on the heels of the company's rollout of the deal with the unnamed company, which calls for "hydrogen fuel cell deployments" across the firm's distribution network over a two-year period.

Plug Power touted the deal with what it called a "material handling" company as a key step toward meeting its 2024 goal of $1 billion in billings. Other key drivers include pushing growth in the European market and developing new sales channels, the company said.

Plug Power said its latest order is for its "GenDrive fuel cell power, GenFuel hydrogen fuel, storage and dispensing infrastructure," as well as "GenCare aftermarket service and support."

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Along with reduced greenhouse gas commissions, hydrogen-powered forklifts are also less expensive to operate and more productive, Plug Power contended.

Companies with warehouses and other facilities with 200 or more hydrogen-powered forklifts can save more than $1 million a year, Plug Power said.

"The material handling industry remains our core growth market in the near term," said Andy Marsh, Plug Power's CEO, in a press statement. "Coupling this growth with already unfolding market expansion in stationary power and on-road electric vehicles well positions Plug Power to achieve our $1 billion gross billing goal for 2024."

The Latham, N.Y.-based company said it has installed 30,000 fuel cell units in commercial applications and built more than 80 hydrogen stations.