Plug Power: a growing force for hydrogen in Europe
IIt doesn’t seem like a day goes by without a new Plug Power announcement (PLUG) and Wednesday was no different.
The hydrogen specialist revealed that he has signed a memorandum of understanding with French green hydrogen producer Lhyfe, which stipulates that the two companies will cooperate on hydrogen production in Europe.
Specifically, the duo intend to develop green hydrogen plants from renewable energies such as offshore wind, with the aim of producing green H2 for on-road and off-road mobility applications. Additionally, the companies plan to work together to develop an offshore wind electrolyser facility based in the United States. The initiative projects a total hydrogen capacity of 300 MW by 2025 and will also take advantage of PLUG’s electrolyser systems to develop a 1 GW production site.
Considering the size of TAM in Europe and the intersection of offshore wind and green hydrogen, the choice of a development partner for green hydrogen production and electrolysers is a “remarkable” event. , according to the Evercore analyst. James West, although the benefits are in a few years.
“The initiative does not matter for short or medium term revenue (2021-2024E), but we believe it paves the way for robust revenue growth after 2025 and should strengthen the implantation of the company in one of the continent’s most favorable countries for renewable energies. “, continued the analyst.
PLUG has made inroads in Europe; it is already present in France, Portugal, the Netherlands and Italy, while the company’s European headquarters are in Germany.
The MoU follows another collaboration between the two companies; earlier this year, PLUG provided 1MW of electrolyser capacity for the Lhyfe offshore H2 production facility, as part of a project that will go online in 2022. Located off the coast of France, the The project is the first of its kind, using Vestas’ floating wind turbines to produce renewable energy capable of using electrolysis for the production of green hydrogen.
To that end, West stays with the Bulls. Evercore analyst maintains a buy rating and a target price of $ 42 on the stock. (To look at West’s background, Click here)
Most analysts agree with West’s thesis; on the basis of 12 purchases against 3 takes, the PLUG share benefits from a strong consensual purchase rating. The average price target is $ 43.36, implying that the stocks have room for 14.5% growth in the coming year. (See the analysis of PLUG shares on TipRanks)
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