Plug Power (PLUG) stock is climbing 8% in early trading. The company sells hydrogen and equipment used to make the fuel.

PLUG announced today that Australia-based Allied Green Ammonia had decided to move forward with a very large potential deal with the American hydrogen firm.

A wide-angle view of a team of workers wearing PPE in a large hydrogen plant.

Where Plug and Allied Green Stand

Plug reported this morning that Allied Green had agreed to buy a huge three gigawatts of electrolyzers, which are used to make green hydrogen, from Plug. The Australian firm plans to use the electrolyzers in its "green hydrogen-to-ammonia plant, currently under development in Australia," Plug reported.

In the wake of the deal announced today, Plug will begin carrying out design and engineering work for Allied Green.

Importantly, however, Allied Green has not yet made a Final Investment Decision on the plant, and Plug does not intend to start producing and delivering the electrolyzers until the first quarter of 2027.

Plug reported that Allied Green is expected to make a Final Investment Decision on its facility by Q2 of 2025.

The Recent Price Action of PLUG Stock

The shares have jumped 28% in the last month and 37% in the previous three months.

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