Plug Power Inc. (NASDAQ: PLUG) shares closed more than 5% lower in the ordinary session on Monday.
What happened: The shares fell despite an announcement on the day that the company cooperates Chart Industries, Inc. (NYSE: GTLS) and Baker Hughes (NYSE: BKR) to become a cornerstone investor in the formation of a ‘unique’ new hydrogen-only private infrastructure fund called the FiveT Hydrogen Fund.
According to the Plug Power statement, the fund will be dedicated to delivering large-scale clean hydrogen infrastructure projects.
While Plug Power says it plans to commit 160 million euros ($ 200 million), Chart Industries, a global equipment manufacturer for energy and industrial gas markets, and Baker Huges, an energy technology company, will spend 50 million euros respectively. ($ 60 million).
According to the statement, the Fund will “exclusively finance projects” for the production, storage and distribution of clean hydrogen.
EuroT, which is denominated in Euros, is offered only to qualified and verified investors and aims to raise EUR 1 billion ($ 1.18 billion) from both financial and industrial investors, according to Plug Power.
The initial investment covers only 26% of the stated objective of the fund.
Why it matters: Last week, Plug Power’s shares jumped 10.6% higher after the hydrogen solution company announced plans to build a green hydrogen production plant in partnership with Brookfield. Renewable Partners LP (NYSE: BEP) and Brookfield Renewable Corporation (NYSE: BEPC).
Price action: Plug Power shares closed 5.16% lower at $ 33.44 on Monday and gained 0.18% in the after-hours session.
Benzinga’s name: The fact that FiveT will provide financing to projects or prospective customers raises concerns about the demand for clean hydrogen products, and this could be a possible reason for investors to be less than enthusiastic about the announcement.
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