Plug Power (PLUG) Surges 9.9% on NASA Million-Dollar Deal

PLUG +1.20% APD +1.43%

We recently published 10 Stocks Stealing the Spotlight Early as Christmas Looms. Plug Power Inc. (NASDAQ:PLUG) is one of the top performers on Tuesday.

Plug Power saw its share prices jump by 9.90 percent on Tuesday to finish at $2.11 apiece as investor sentiment was boosted by the start of its supply of hydrogen fuel to the National Aeronautics and Space Administration (NASA).

Plug Power Inc. (NASDAQ:PLUG) was one of the two companies tapped by NASA to supply the agency with approximately 36,952,000 pounds of liquid hydrogen, with the other firm being Air Products and Chemicals, Inc.

Under NASA’s agreement with Plug Power Inc. (NASDAQ:PLUG), the latter would deliver approximately 480,000 pounds of the commodity to NASA’s Glenn Research Center in Cleveland, Ohio, and at the Neil A. Armstrong Test Facility in Sandusky, Ohio, for a maximum contract value of about $2.8 million.

Meanwhile, Air Products would supply about 36.5 million pounds of liquid hydrogen to NASA’s Kennedy Space Center and Cape Canaveral Space Force Station in Florida; the Marshall Space Flight Center in Huntsville, Alabama; and the Stennis Space Center in Bay St. Louis, Mississippi, for a maximum contract value of $144.4 million.

The contracts consist of a two-year base period followed by three one-year periods, which, if exercised, would extend the contracts to Nov. 30, 2030.

NASA said that the supply is critical for the agency’s centers as they use liquid hydrogen, combined with liquid oxygen, as fuel in cryogenic rocket engines, and the commodity’s unique properties support the development of aeronautics.

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Disclosure: None. This article is originally published at Insider Monkey.