By Sam Boughedda
Investing.com -- Plug Power Inc (NASDAQ:PLUG) announced Tuesday that it has been awarded an order to deliver a one-gigawatt electrolyzer to H2 Energy Europe.
H2 Energy was established in Zurich, Switzerland in 2014 and wants to make hydrogen from renewable energy.
According to Plug Power, this will be the world's largest capacity electrolyzer installation. The deal means Plug's electrolyzer will enable the production of up to 100,000 metric tonnes of green hydrogen per year.
Meanwhile, the production of green hydrogen will be used in the energy and transportation sector in northern Europe to fuel the equivalent of approximately 15,000 heavy-duty vehicles per day.
"We see green hydrogen as the future and have made significant investments in green hydrogen including in the construction of a gigafactory for electrolyzer production," noted Andy Marsh, CEO of Plug.
Marsh continued, "Our operational readiness and manufacturing capacity were key determinants in our selection for the world's largest order to date, and we are pleased to be a part of this project with H2 Energy."
The technology will be deployed at H2 Energy's facility in 2024, with green hydrogen production beginning in 2025.
Plug Power shares have surged 12.3% on Tuesday.
Following the announcement, Morgan Stanley analyst Stephen Byrd estimated an upside of $500 million of revenue from this order alone. In addition, Byrd believes there could be upside to his estimates due to the size of the order.
The analyst has an Overweight rating and a $60 price target on Plug Power.