Clean hydrogen solutions provider Plug Power (NASDAQ:PLUG) has bagged a $21.8 million grant as part of a consortium to set up an offshore hydrogen plant in Belgium.
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The consortium is made up of nine companies and the grant from the European Commission is for a 10MW project. Plug Power will design and deliver a 10MW PEM electrolyzer system to the site in Belgium.
Importantly, the project endeavors to demonstrate the commercial viability of renewable offshore production of hydrogen with the final aim of deploying large-scale solutions. This is the first offshore project of its scale globally and is expected to produce nearly four tons of hydrogen a day. The product will be delivered to customers across Belgium, southern Netherlands, and northern France.
Further, the project is anticipated to come online by the middle of 2026 and Plug anticipates private-sector investments in offshore hydrogen after a successful demonstration.
The grant duration is for a five-year period and the undertaking could potentially set the stage for future large-scale offshore hydrogen projects.
Overall, the Street has an $18.42 consensus price target on Plug Power alongside a Moderate Buy consensus rating. Shares of the company have dropped nearly 50% over the past year with short interest in the stock now standing at about 22.2%
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