Plug Power Inc. (PLUG) stock gained Tuesday after the hydrogen technology company signed a strategic partnership with Arcadia eFuels covering more than 1 gigawatt of potential electrolyzer projects.

The agreement includes a 280-megawatt electrolyzer supply deal for Arcadia's Project ENDOR in Denmark. It also positions Plug as the preferred electrolyzer supplier for four additional projects in Europe and the Americas.

Plug Power Lands 280-MW Denmark Project

Project ENDOR is planned for the Port of Vordingborg on Denmark's south coast. The facility will use renewable electricity to power 280 MW of Plug's GenEco electrolyzers.

Plug said the equipment is expected to produce about 110 tons of renewable hydrogen per day. Arcadia plans to combine the hydrogen with captured carbon dioxide to produce synthetic sustainable aviation fuel, or e-SAF, for conventional aircraft.

Deliveries will begin after the project issues a notice to proceed. Arcadia said ENDOR is advancing toward a final investment decision. The agreement follows three years of engineering work between the companies.

Partnership Expands Beyond ENDOR

The broader cooperation agreement gives Arcadia priority access to Plug's manufacturing capacity as future projects advance. The planned pipeline represents more than 1 GW of potential electrolyzer capacity.

Plug CEO José Luis Crespo said Europe remains the company's most active electrolyzer market. He also pointed to growing e-SAF demand as European aviation fuel mandates take effect.

The European Union's ReFuelEU Aviation rules require airlines and fuel suppliers to increase the use of sustainable aviation fuels. The regulation also introduces a synthetic aviation fuel requirement beginning in 2030.

Plug is already working on several large European hydrogen projects, including a 100-MW GenEco installation at Galp's Sines refinery in Portugal.

Analyst Reiterates Buy Rating

Separately, HC Wainwright analyst Amit Dayal on Tuesday reiterated a Buy rating on Plug Power and maintained a $7 price target.

PLUG Price Action: Plug Power shares were up 2.96% at $1.91 at the time of publication Tuesday, according to market data.