Plug Power Inc. (PLUG - Free Report) has entered into a partnership with Chung-Hsin Electric and Machinery Manufacturing Corporation (“CHEM”) to supply 5kW ProGen hydrogen engines.The company has started supplying the engines, which lower product cost and improve performance of CHEM’sME2 methanol fuel cell system.
CHEM is integrating Plug Power's proprietary ProGen OEM hydrogen engine into its next-generation stationary power products. This will enable CHEM to enhance the ability to provide clean as well as stable backup power solutions in the large and growing markets for telecom and rural village power.
Opportunities for Plug Power
CHEM manufactures and sells electric motors and generators in Taiwan and internationally. The partnership will enable Plug Power to expand its footprint. CHEM stationary power systems target the markets in Asia, Africa and India. Plug Power will have the opportunity to enter these areas and develop solutions for stationary power applications along withe-mobility applications.
Per a report by Market Research Engine, the Power Quality Equipment Market is expected to exceed more than US$ 43.0 Billion by 2024 at a CAGR of 6%. Per the report, the uninterruptible power supply (UPS) market is expected to grow to more than $13 billion by 2025. We believe that the company, which directly caters to demand in the backup power market, will gain in the near term and attract investors.
Fuel Cell Market Outlook
The demand for fuel cell technology is gaining popularity on the back of reliability and cheaper-than-conventional power sources. It has become a viable option for vehicles owing to inherent zero emissions. Per REASERCH AND MARKETS, the global fuel cell market is projected to grow at a CAGR of more than 18% and exceed $5 billion by 2023 from $2 billion in 2017. We believe that the demand for Plug Power’s GenKey solutions will rise significantly, considering growth in the fuel cell market.
Apart from Plug Power, other companies like Ballard Power Systems (BLDP - Free Report) , Bloom Energy Corporation (BE - Free Report) and FuelCell Energy, Inc (FCEL - Free Report) are undertaking initiatives to introduce fuel-cell alternatives .
Zacks Rank & Price Movement
Plug Power currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Plug Power has outperformed its industry in the past year. The company’s shares have gained 32.1%, against the industry’s decline of 5..3%.
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