Wed. 13 Oct 2021, 3:45pm ETBenzinga
In: News, Contracts
- Plug Power Inc (NASDAQ:PLUG) invests in Airflow, an aerospace company building a next-gen electric Short Takeoff and Landing (eSTOL) aircraft. The financial terms of the deal were not disclosed.
- The companies are co-developing and certifying a hydrogen fuel cell-based propulsion system designed for a new generation of sub-regional aircraft. The parties noted that the partnership indicates the next phase of the pursuit of carbon-neutral aviation.
- Airflow had recently secured over $600 million in Letters of Intent from eleven airlines operating sub-regional aircraft.
- Plug Power will serve as Airflow's preferred hydrogen provider, opening up more possibilities for Plug Power's hydrogen refueling infrastructure to co-locate at customer airports.
- As per the terms, Airflow and Plug Power will integrate and test a full-scale, ground-based powertrain prototype.
- After the successful ground demonstration, the teams will retrofit the powertrain into an aircraft with the ultimate certification goal.
- "Airflow represents another vital leg of the stool in our aerospace strategy. We see the development and certification of a system for Airflow's Part 23 aircraft as an ideal entry point into the aerospace market that enables expansion into larger aircraft programs," commented Plug Power CEO Andy Marsh.
- Also read, Plug Power Shares Charge As Hydrogen Energy Company Announces Twin Partnerships.
- Price Action: PLUG shares are trading higher by 12.3% at $33.44 on the last check Wednesday.