Plug Power - Portfolio Addition

Plug Power is a US-based leader in the field of hydrogen fuel-cells. The company has been around for 20 years and was one of the first to commercialise hydrogen fuel-cell technologies and establish markets for various applications. It has developed a range of scalable hydrogen solutions for both mobile and stationary applications. Some high profile customers include the supermarket chains Carrefour and Walmart, BMW, IKEA and also Amazon.

The company manufactures fuel-cell engines for e-mobility and provide back-up hydrogen infrastructure which provides sustainable power solutions for companies looking to transition towards a more  low carbon business model. Applications include fleet vehicles, small-scale industrial robotics, power for data centres and also UAVs/drones.

Expansion

Plug is looking to expand its operations in Europe following the decision by the EU to implement its Green Deal which includes an investment of  $210 billion in green hydrogen over the coming decade.

Earlier this year the company acquired United Hydrogen and Giner ELX for $123 million which will enable PLUG to produce, store and deliver more hydrogen and provide opportunities to supply clean energy solutions in the manufacture of ammonia, concrete, steel and computer chips. This could be a really big deal for reducing climate emissions.

The finance was provided by the issue of a 5 year green bond - a first in the US.

Green

Plug has recently agreed with Brookfield Renewable to energise its green hydrogen production. This will enable Plug to produce 10 tons of clean liquid hydrogen per day.

"We are excited to be partnering with Brookfield Renewable, a global leader in renewable generation, and anticipate opportunities to build upon this relationship in the coming years," stated Plug Power CEO Andy Marsh in the press release announcing the deal. He also noted that "this marks important progress in our steady march to achieve our overall hydrogen strategy of building green liquid hydrogen generation facilities with strategic partners in the U.S. and globally thereafter."

Over the next few years the company plans to become the largest green hydrogen player in the US and globally thereafter!

It has been on my watchlist for some time but what sparked my interest this week was a project to work on the development of a hydrogen fuel-cell airplane in conjunction with Universal Hydrogen. They plan to have a commercial plane in the air by 2024. This could pave the way for larger projects to decarbonise the skies. Early days but exciting prospects!

One year price chart (click to enlarge)

The share price has risen quickly this year from under $4 at the start of 2020 to reach a high of $14 at the end of August. My initial tranch of shares were purchased in my Sipp at the price of $11.40 and currently make up just 2% of my green portfolio.

As ever, this article is merely a record of my personal investment decisions and should not be regarded as an endorsement or recommendation - always DYOR!