Plug Power Inc (NASDAQ:PLUG) stock surged 7% to $3.75 in early trading Thursday.The fuel cell company announced a $20 million deal with an undisclosed “major North American telecommunications provider.” Under the terms of the deal, Plug Power will provide GenFuel hydrogen services and ReliOn integrated fuel cell backup power solutions.
Plug Power to support 500 sites
It’s a multi-year contract, and the Latham-based company’s systems will be used in the telecom provider’s wireless network. Plug Power has agreed to support as many as 500 sites for the undisclosed telecom company. Notably, the fuel cell leader acquired ReliOn for $4 million in an all-stock deal in April this year. Before the acquisition, Plug Power relied heavily on Ballard Power Systems Inc. (NASDAQ:BLDP) (TSE:BLD) for fuel cell stacks.
The ReliOn integrated solution includes bulk refillable hydrogen storage, fuel cell systems, DC plant rectifiers, battery technology and space for radio equipment. Packed in an environmentally-hardened outdoor cabinet, Plug Power’s ReliOn works as a supplement to batteries and replaces backup power generators. Plug Power claims that the system has a much lower cost of ownership, and it can be deployed in a fraction of space required by old solutions.
Plug Power stock up 143% this year
Plug Power stock has skyrocketed more than 143% this year, compared to just 12% gain in S&P 500 index. The company has won several deals with giants like Walmart, FedEx, Volkswagen, BMW and others. Plug Power is also expanding its business to ground support equipment (GSE) at airports. Last month, the company installed its first ground support equipment at the Memphis airport.
The Andy Marsh-led company has entered an agreement with M&T Bank to provide financing options to first-time buyers. Easy financing options are expected to help Plug Power attract more customers and boost its revenue. Andy Marsh expects the company’s full-year 2014 revenue to surpass $75 million, almost triple the revenue in 2013. For FY2015, the company aims to reach $130 million in revenue.