Plug Power Shares Charge As Hydrogen Energy Company Announces Twin Partnerships

Plug Power Inc. PLUG shares are higher Wednesday after the company announced two new strategic partnerships.

Plug Power, Airbus Work On Decarbonizing Air Travel: Plug Power said it is joining hands with Airbus SE EADSY to study the feasibility of bringing green hydrogen to future aircraft and airports worldwide.

Airbus, which is aiming to bring zero-emission aircraft to the market by 2035, has zeroed in on Plug Power for decarbonizing air travel. The companies plan to conduct a joint study and draw a roadmap for delivering green hydrogen to aircraft and the airport ecosystem in the coming years.

Plug Power will build deployment scenarios for green hydrogen infrastructure at airports, while Airbus will provide insight on hydrogen aircraft characteristics.

"Not only do we envision a future where aircraft everywhere are powered by green hydrogen, but the airports that serve them as well, including ground support equipment, forklifts, and vehicles that shuttle consumers around airports, and to gates. In aggregate, this should go a long way toward building a more sustainable future for the global aviation industry," said Plug Power CEO Andy Marsh.

As part of the partnership, Plug Power and Airbus said they will select a U.S. airport to serve as the first "Hydrogen Hub" pilot airport in North America, serving as a case study for hydrogen infrastructure scale-up at other airports.

Related Link: Why This Analyst Thinks Plug Power Stock Deserves Elevated Valuation

Plug Power, Phillips To Work On Low-Carbon Hydrogen Business Opportunities: Separately, Plug Power and Phillips 66 PSX, a diversified energy manufacturing and logistics company, announced the signing of a memorandum of understanding to collaborate on the development of low-carbon hydrogen business opportunities.

As part of this agreement, the companies plan to explore ways to deploy Plug Power's technology within Phillips 66's operations, leveraging the former's experience as a full value chain provider within the hydrogen economy.

Plug Power, meanwhile, will benefit from Phillips 66's capabilities as a developer of large-scale energy infrastructure, operator of industrial-scale hydrogen production facilities and presence in the fuels marketing segment in the U.S. and Europe.

"We are excited to team up with Phillips 66 to take advantage of its rich history in the energy industry and forward momentum in the energy transition," said David Bow, executive vice president of Electrolyzers Solutions at Plug Power.

The two companies will be working together on three key objectives, namely integrating and scaling low-carbon hydrogen in the industrial sector; advancing hydrogen fueling opportunities for the mobility sector; and developing hydrogen-related infrastructure to support the build-out of the hydrogen value chain.

PLUG Price Action: Plug Power shares were rallying 10.91% to $33.03 Wednesday morning. 

Related Link: Why This Plug Power Analyst Is Bullish On Hydrogen Stock's Growth Potential