Plug Power Inc. (NASDAQ: PLUG) shares traded nearly unchanged in premarket action Thursday, following the company's announcement that its Barrow Green Hydrogen project in the United Kingdom has reached a final investment decision (FID). The stock was quoted at $3.31, down approximately 0.3% from Wednesday's close, as investors weighed the positive project catalyst against ongoing liquidity and margin concerns.
The Barrow project, located in Barrow-in-Furness, Cumbria, will see Plug Power supply six 5-megawatt GenEco proton exchange membrane (PEM) electrolyzers. These electrolyzers use renewable electricity to split water into green hydrogen, which will be used to reduce natural gas consumption at a nearby Kimberly-Clark facility. The project is expected to generate about 100 gigawatt-hours of green hydrogen annually, cutting the plant's gas use by up to 50% and reducing carbon dioxide emissions by 18,300 tonnes per year.
The project is being developed by Green Hydrogen Energy Company, a joint venture between Schroders Greencoat and Carlton Power. Plug Power CEO Jose Luis Crespo characterized the FID as a transition "from award into execution," while Schroders Greencoat's Kristian Høeg Madsen called it a "key milestone." The project is seen as a tangible step forward for Plug Power's order book, moving from promises to actual project delivery.
Despite this positive development, the company's financial health remains under scrutiny. In its first-quarter report, Plug Power posted revenue of $163.5 million, up 22% year-over-year. However, the company reported a GAAP loss of $0.18 per share, with an adjusted EPS loss of $0.08. GAAP gross margin improved to negative 13% from negative 55% a year earlier, but remains deeply negative.
Liquidity is a key concern. Plug Power ended the quarter with over $802 million in total cash, including $223 million in unrestricted cash and roughly $579 million in restricted cash. The company expects approximately $275 million in proceeds from hydrogen project asset monetization and is targeting positive EBITDAS (earnings before interest, taxes, depreciation, amortization, and stock-based compensation) in the fourth quarter.
Wall Street analysts remain cautious. Wells Fargo raised its price target to $2.50 with an Equal-Weight rating, while Susquehanna lifted its target to $3.75 with a Neutral rating. Canaccord raised its target to $4 with a Hold rating. BMO Capital's Ameet Thakkar maintained an Underperform rating, noting that margins "remain well negative."
The broader fuel-cell sector showed mixed performance, with FuelCell Energy and Bloom Energy drawing stronger interest tied to AI data-center power demand. Plug Power's focus on hydrogen production, electrolyzers, and material handling leaves it more exposed to project development timelines rather than the data-center theme that has boosted some peers.
For now, the Barrow project provides a tangible catalyst, but the company must still navigate project development risks, permitting delays, and the need to convert its backlog into cash. Investors will be watching closely to see if Plug Power can turn this UK win into a broader trend of execution and improving financials.
