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Plug Power (PLUG) shares pushed aggressively to the upside on Oct. 1 after the hydrogen fuel cell firm delivered its first 10MW GenEco electrolyzer array to Galp’s Sines Refinery in Portugal.
The company will deliver another nine similar modules to the refinery by early 2026. The full 100MW deployment will replace 20% of its grey hydrogen and cut 110,000 tons of CO₂ annually.
Following today’s rally, Plug Power stock is trading at more than 4x its price in early April.
Why Is the Delivery to Sines Refinery a Big Deal for PLUG Stock?
Investors are reading this delivery to Galp’s Sines Refinery as a key milestone in Europe’s largest PEM hydrogen project.
PLUG stock soared on Wednesday primarily because the Galp partnership confirms it can deliver industrial-scale systems that meet operational demands and regulatory decarbonization goals.
With 15,000 tons of renewable hydrogen annually and a $2 billion global opportunity funnel, Plug Power is positioning itself as a serious contender in Europe’s energy transition.
The modularity and scalability of GenEco arrays make the firm’s technology attractive for future refinery retrofits, chemical plants, and clean fuel initiatives as well.
All in all, the announcement signals execution, not just ambition, and that sure could drive Plug Power shares higher from here.
Why Plug Power Shares Aren’t Particularly Worth Owning in 2025
While the Galp partnership is evidently constructive for PLUG shares, they remain unattractive to own because the company’s financials are still in shambles.
As of writing, the Latham-headquartered firm is deeply unprofitable, and is burning cash at a rather aggressive pace.
Even with cost-cutting initiatives tied to Project Quantum Leap, its gross margin isn’t expected to breakeven until next quarter, and even then it will only be on a run-rate basis.
Plus, after a meteoric rally in recent months, Plug Power shares’ valuation is no longer attractive either. Until profitability and cash flow improves, the clean energy stock, therefore, is speculative only.
Wall Street Warns of Significant Downside in Plug Power
Investors should remain wary of buying Plug Power stock at current levels also because Wall Street currently has a consensus “Hold” rating on it.
The mean target of $2.13 indicates potential downside of more than 25% from here.
