Plug Power Inc (NASDAQ:PLUG) shares rallied more than 5% in early trading session Tuesday. The fuel cell company announced that it has entered a long-term hydrogen distribution agreement with Praxair, Inc. (NYSE:PX). Danbury-based Praxair is the largest liquid hydrogen producer in North America. The company has more than a decade of experience providing hydrogen fuel and technical support to fuel cell developers.
Praxair to be a reliable source of hydrogen for Plug Power
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According to the terms of the deal, Praxair will supply hydrogen fuel to Plug Power’s GenKey customers throughout the United States. GenKey is an all-in-one solution that includes GenDrive fuel cells, GenFuel hydrogen fuel and GenCare maintenance service. Praxair will become a reliable source of high-quality hydrogen for the Latham-based company’s customers, Plug Power CEO Andy Marsh said.
Earlier this year, Praxair announced that it will increase the liquid hydrogen production capacity at its Niagara Falls, New York plant. The project will be completed next year. Todd Lawson, Praxair’s VP for sales, said that its deal with Plug Power will offer customers with “productivity benefits and help them reduce the environmental impact.”
Plug Power to report Q3 results on Nov.12
The announcement comes just days after Plug Power bagged a supply order from Golden State Foods. The fuel cell company will be supplying 39 GenDrive units to the fast-food distributor’s new facility near Chicago. Golden State Foods has an elite list of clients including Starbucks Corporation (NASDAQ:SBUX), McDonald’s Corporation (NYSE:MCD), Arby’s and Taco Bell.
Plug Power is scheduled to release its fiscal Q3 results on Nov.12. Analysts polled by FactSet expect the company’s September quarter revenue to come in at $24.37 million, up 426.70% from last year. However, the company is likely to remain in red with 3 cents a share in quarterly losses. Plug Power shipped a staggering 857 GenDrive units during the July-September quarter, compared to just 155 units in the same quarter last year.
Plug Power shares were up 3.40% to $5.32 at 10:59 AM EST on Tuesday.