Plug Power (PLUG) -5.1% in Monday’s trading despite saying it was selected to supply British developer Carlton Power with 55 MW of its proton exchange membrane electrolyzers across three projects in the U.K.
The award, subject to a final investment decision, includes 30 MW for the Barrow-in-Furness project in Cumbria, 15 MW for the Trafford project in Greater Manchester, and 10 MW for the Langage project in Plymouth, marking the largest combined electrolyzer supply contract in the U.K. to date.
All three projects are backed by the U.K. government’s Hydrogen Business Model and serve as blueprints for industrial decarbonization and energy security, furthering the U.K.’s low-carbon hydrogen ambitions.
However, Plug (PLUG) shares are lower for the third straight session since the company confirmed it is suspending plans to build six facilities to produce and liquefy zero- or low-carbon hydrogen, putting at risk the $1.66 billion federal loan guarantee it obtained in January during the final days of the Biden administration.
Earlier last week, Plug (PLUG) reported a Q3 adjusted loss of $0.12/share while revenues rose 2% Y/Y to $177 million.
Meanwhile, Susquehanna analyst Biju Perincheril reiterated his Neutral rating on Plug Power (PLUG) but lowered his stock price target to $2.50 from $3.50, pointing to disappointing Q3 results and emphasizing that broader industry dynamics remain difficult.
“PLUG is making progress on shoring up its balance sheet and getting back to breakeven gross margins, but uncertainty in the hydrogen market continues to persist and weigh on long-term demand, particularly in the U.S.,” Perincheril wrote.