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Plug Power (PLUG) stock is climbing 8% in early trading. The company sells hydrogen and equipment used to make the fuel.
PLUG announced today that Australia-based Allied Green Ammonia had decided to move forward with a very large potential deal with the American hydrogen firm.
A wide-angle view of a team of workers wearing PPE in a large hydrogen plant.
Where Plug and Allied Green Stand
Plug reported this morning that Allied Green had agreed to buy a huge three gigawatts of electrolyzers, which are used to make green hydrogen, from Plug. The Australian firm plans to use the electrolyzers in its "green hydrogen-to-ammonia plant, currently under development in Australia," Plug reported.
In the wake of the deal announced today, Plug will begin carrying out design and engineering work for Allied Green.
Importantly, however, Allied Green has not yet made a Final Investment Decision on the plant, and Plug does not intend to start producing and delivering the electrolyzers until the first quarter of 2027.
Plug reported that Allied Green is expected to make a Final Investment Decision on its facility by Q2 of 2025.
The Recent Price Action of PLUG Stock
The shares have jumped 28% in the last month and 37% in the previous three months.
While we acknowledge the potential of PLUG, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLUG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock Disclosure: The author owns shares of PLUG but has no plans to trade them in the next 48 hours. This article is originally published at Insider Monkey.