Plug Power To Expand On-Road Application Via Acquisition
Zacks Investment Research | Jun 06, 2018 11:14PM ET
Plug Power Inc (NASDAQ:PLUG) announced that it has acquired American Fuel Cell (“AFC”), founded by ex-employees of General Motors Company (NYSE:GM) . The company develops Membrane Electrode Assembly (“MEA”) technology, which is the key component of a fuel cell that helps to produce power.
Benefits of the Acquisition
Plug Power will have access to innovative, leading edge MEA design capability, which is likely to expand the company’s area of operation into the on-road delivery vehicles market. Per a Frost & Sullivan release, the global electric truck market will achieve annual sales of more than 2.25 million units by 2025. The AFC acquisition will augment Plug Power’s knowledge and expertise of on-road applications.
Demand for FCEV
Fuel cell electric vehicles (FCEVs) promote clean energy and are increasingly favored over the diesel-powered vehicles. Fuel cell generates clean electricity with high-power density, extended range and market-leading uptime based on rapid refueling
The need for lower emission vehicles boosts demand and provides opportunities for fuel cell makers like FuelCell Energy Inc (NASDAQ:FCEL) and Ballard Power Systems, Inc (NASDAQ:BLDP) .
Zacks Rank & Price Movement
Plug Power carries a Zacks Rank #3 (Hold). You can see Zacks Investment Research
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