Global hydrogen fuel cell solutions company Plug Power Inc. (PLUG:NASDAQ) yesterday announced that it has completed the acquisitions of United Hydrogen Group Inc. and Giner ELX. The firm advised that "the acquisitions are in line with its vertical integration strategy in the hydrogen business laid out in September of 2019 with plans to have more than 50% of the hydrogen used to be green by 2024."
The company indicated "that these activities further enhance Plug Power's position in the hydrogen industry with capabilities in generation, liquefaction and distribution of hydrogen fuel complementing its industry-leading position in the design, construction, and operation of customer-facing hydrogen fueling stations and that these activities establish a clear pathway for Plug Power to transition from low-carbon to zero-carbon hydrogen solutions."
The company additionally reported that with the closing of the acquisitions "it is raising its 2024 financial targets to achieve $1.2 billion in revenue (up from $1 billion), $210 million in operating income (up from $170 million), and $250 million in adjusted EBITDA (up from $200 million)." The firm added that the higher estimates are based upon the added value of this vertical integration, significant margin improvement and anticipated global growth in the electrolyzer market.
The firm stated that the planned capacity addition will serve the significant and rapidly growing demand for green hydrogen. Presently, Plug Power projects that its current clients will be using nearly 100 tons of hydrogen daily by 2024 with over 50% of that to be green hydrogen. The company mentioned that the additional green hydrogen generation capabilities will enable it to serve customers in the ammonia, fertilizer and steel manufacturing markets.
The company explained that one of the acquired firms, United Hydrogen, has the capability to produce 6.4 tons of hydrogen each day with plans to increase that capacity to 10 tons daily.
The other firm, Giner ELX, includes experienced teams in PEM electrolysis. The company stated that "Giner ELX's offerings include one of the world's largest, most efficient and cost-effective PEM hydrogen generators; grid-level renewable energy storage solutions; and on-site hydrogen generation systems for fuel cell vehicle refueling stations and industrial uses." Plug Power noted that acquiring Giner ELX adds significant manufacturing capabilities to serve the global electrolyzers market.
The company's CEO Andy Marsh remarked, "Plug Power is working to build the modern clean hydrogen economy...Every decision we make is with an eye to the future, not the past. This closely aligns with the efforts that companies like United Hydrogen and Giner ELX have made to secure broad participation in the hydrogen economy, and to achieve the objectives of a clean environment and reduced dependence on foreign oil. We welcome these organizations into the Plug Power family where, as a team, we can accelerate the adoption of low carbon and zero carbon hydrogen on a global scale."
Plug Power is based in Latham, N.Y., and stated that "it is building the hydrogen economy as the leading provider of comprehensive hydrogen fuel cell turnkey solutions." The company's technology is used to power electric motors with hydrogen fuel cells. The firm pointed out that it has now deployed over 32,000 fuel cell systems for e-mobility. The company noted that it has built and operated a hydrogen highway across North America and is the largest buyer of liquid hydrogen.
Plug Power has a has a market capitalization of around $2.1 billion with approximately 324.3 million shares outstanding and a short interest of about 21.6%. PLUG shares opened almost 13% higher today at $7.25 (+$0.82, +12.75%) over yesterday's $6.43 closing price and reached a new 52-week high price this morning of $7.75. The stock has traded today between $6.91 and $7.75 per share and is currently trading at $7.54 (+$1.11, +17.23%).
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