Liquid green indeedWalmart taps Plug Power to help it achieve net carbon zero emissions, and hydrogen is indeed liquid green – if the company’s share price is anything to go by anyway.
- Plug Power shares charged ahead nearly 10% after inking an agreement with Walmart to deliver up to 20 tons per day of “liquid green hydrogen power” to the retail giant’s forklift operations across the US.
- The pair have been in business together since 2012, when they launched a 50-forklift pilot program that has since been expanded to a 9.5k fleet, but this is one of Plug Power’s first green hydrogen supply contracts – with oil and commodities at an all-time high, this seems like a good time to strengthen that friendship.
- Investors have been waiting for a headline-grabbing piece of news for a while now as they’ve waded through share price volatility, and this a partnership that could boost PLUG’s long term strength – Walmart wants to be emission-free by 2040, and it seems to have picked its partner for the journey, which could mean lots of $$$.
Walmart Corporate / Wikimedia Commons
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Plugging into earnings powerInvestors are feeling recharged and ready for the quarter ahead after Plug Power’s fourth quarter earnings.
- Prices rallied in extended trading on Tuesday despite the hydrogen fuel-cell company releasing a mixed Q4 bag. It reported a wider loss than expected at $0.33 per share, though revenue of $161.9m managed to top estimates.
- Higher natural gas prices left a mark. The company felt pressure on its margins as the fuel business continues to see massive price jumps. It has started production in a new plant in Tennessee, but that hasn't been going on for long enough to make a difference yet – the EV maker hopes fuel margins will break even by 2023.
- However, good news lies ahead. Plug Power reaffirmed its 2022 goal of raking in between $900m and $925m in revenue, which would imply y-o-y growth of 90%, and it’s also on track to meet its 2025 goal of $3bn in revenue.
Neven Krcmarek / Unsplash