Plug Power Inc. saw its stock edge up 1.2% to $3.35 in Nasdaq trading on Wednesday, following the company's announcement that its 30-megawatt Barrow Green Hydrogen project in the UK has reached final investment decision (FID). This milestone shifts the project from the award phase into execution, marking a significant step forward for the hydrogen fuel cell developer.
The stock rebounded after four consecutive sessions of declines, which included a 4.1% drop on Tuesday. Trading volume was approximately 17.9 million shares, with the stock moving between $3.225 and $3.39 during the session. The broader market also provided a tailwind, with the S&P 500 and Nasdaq rising ahead of Nvidia's earnings report.
Project Details and Partners
The Barrow Green Hydrogen project, located in Barrow-in-Furness, Cumbria, is being developed by Green Hydrogen Energy Company, a joint venture between Schroders Greencoat and Carlton Power. Plug Power will supply six 5 MW GenEco PEM electrolyzers to the site, which use electricity to split water into hydrogen and oxygen. The facility is expected to produce about 100 gigawatt-hours of green hydrogen annually, which will be used to reduce natural gas consumption at a nearby Kimberly-Clark plant by up to 50%.
Plug Power CEO Jose Luis Crespo described the project as the company's "largest UK project" and emphasized that it is moving "from award into execution." Kristian Høeg Madsen, co-head of hydrogen investments at Schroders Greencoat, highlighted that hydrogen will be "central to the next phase" of the energy transition.
Financial Performance and Liquidity
Plug Power reported first-quarter revenue of $163.5 million, up 22% year-over-year, but its GAAP gross margin remained deeply negative at -13%, though this marked an improvement from -55% in the same period last year. Adjusted earnings per share came in at -$0.08.
Liquidity remains a significant concern. The company ended the quarter with over $802 million in cash, but only $223 million was unrestricted. Plug Power is pursuing approximately $275 million in asset sales tied to hydrogen projects, with the first deal—worth about $142 million—expected to close in June.
BMO Capital analyst Ameet Thakkar maintained an Underperform rating on the stock and raised his price target to $1.20 from $1.00, noting that "gross margins still remain well negative." The analyst community remains divided on whether the recent margin improvement is sustainable.
Peer Activity and Market Context
Other hydrogen-related stocks also saw movement on Wednesday. Ballard Power Systems rose approximately 6.7%, while Bloom Energy added 7.0%. In contrast, Air Products and Chemicals, a larger industrial gas company with a hydrogen business, fell about 1.2%.
The broader market provided support, with the SPDR S&P 500 ETF gaining about 0.6% as chip stocks rallied ahead of Nvidia's earnings report.
Risks and Outlook
Despite the project milestone, risks remain. The Barrow facility has yet to be built, and Plug Power must execute on construction, secure customer connections, and complete asset sales while managing its cash position. Any delays, softening hydrogen prices, or the need for additional capital raising could shift investor focus back to cash burn rather than project wins.
Wednesday's move appears more like a test than a clear breakout. While the company has made progress on project execution and margin improvement, investors have not forgotten its history of losses or the fact that the stock still trades well below its 52-week high of $4.58 from October.
