What Is Going On With Plug Power Stock?

Plug Power Inc PLUG shares closed over 5% lower in the regular session Monday.

What Happened: The shares fell despite an announcement on the day that the company was partnering with Chart Industries, Inc GTLS and Baker Hughes BKR to become “cornerstone investors” in the formation of a “unique” new clean-hydrogen-only private infrastructure fund dubbed FiveT Hydrogen Fund.

The fund will be dedicated to delivering clean hydrogen infrastructure projects at scale, according to a Plug Power statement.

While Plug Power says it intends to commit EUR 160 million ($200 million), Chart Industries, a global equipment manufacturer for energy and industrial gas markets,  and Baker Huges, an energy technology company,  will pitch in EUR 50 million ($60 million) respectively.

The Fund will “exclusively finance projects” in the production, storage, and distribution of clean hydrogen, according to the statement.

See also: How to Buy Plug Power (PLUG) Stock

FiveT, denominated in Euros, will be offered only to qualifying and verified investors and is aiming to raise EUR 1 billion ($1.18 billion) from both financial and industrial investors, as per Plug Power.

The initial investment only covers 26% of the fund’s stated fundraising goal.

Why It Matters: Last week, Plug Power’s shares jumped 10.6% higher after the hydrogen solutions company announced plans to build a green hydrogen production plant in cooperation with Brookfield Renewable Partners L.P. BEP and Brookfield Renewable Corporation BEPC. 

Price Action: Plug Power shares closed 5.16% lower at $33.44 on Monday and gained 0.18% in the after-hours session. 

Benzinga’s Take: The fact that FiveT will provide finance to projects or prospective customers raises a concern on the demand for clean hydrogen products and that could be a potential reason for investors to be less than enthusiastic about the announcement.