Plug Power, Inc. (NASDAQ: PLUG), a prominent developer in the hydrogen and fuel cell sector, announced on Friday the successful completion of the installation phase of 100 megawatts (MW) of its proprietary Proton Exchange Membrane (PEM) GenEco electrolyzer systems at the Galp Sines Refinery located in Portugal.
This engineering achievement represents a pivotal milestone within one of the continent's most sizable renewable hydrogen projects, underscoring Plug Power's commitment to advancing sustainable energy infrastructure in Europe.
Since the commencement of this project in October 2025, Plug Power has methodically deployed ten GenEco electrolyzer modules, beginning with the initial 10 MW unit, cumulatively totaling 100 MW at the refinery site. The entirety of these arrays has now been delivered and installed, bringing the project into the final stage of commissioning, which is scheduled to begin imminently.
Upon reaching operational status, the electrolyzer system is poised to produce up to 15,000 tons of renewable hydrogen each year. This production is forecasted to displace approximately 20% of the refinery's current consumption of grey hydrogen, which is conventionally derived from fossil fuels, thereby marking a significant stride towards reducing the carbon footprint of refining operations.
In terms of environmental impact, the initiative is anticipated to curtail greenhouse gas emissions by approximately 110,000 metric tons of CO2 equivalent annually, accounting for both direct (Scope 1) and indirect (Scope 2) emissions associated with refinery operations. This reduction aligns with broader climate action goals and regulatory expectations aimed at decarbonizing heavy industry through renewable energy adoption.
Plug Power's GenEco electrolyzers utilize a sophisticated supply chain strategy that integrates components manufactured across both the United States and Europe. The design is based on scalable PEM technology, which allows flexibility in capacity deployments and is conducive to meeting the project’s ambitious output targets.
The deployment at the Sines Refinery is a core element of Plug Power's expansive European growth strategy, which encompasses planned multi-gigawatt renewable hydrogen projects across Spain, the United Kingdom, and other regions on the continent. This expansive approach is underpinned by a global project pipeline valued at approximately $2 billion, signifying the scale and scope of the company's commitment to expanding renewable energy infrastructure internationally.
Benjamin Haycraft, Chief Strategy Officer at Plug Power, commented on the development stating, “We continue to invest across the region to support large-scale decarbonization, and this milestone demonstrates our ability to deliver real infrastructure that advances Europe’s energy transition and strengthens long-term energy resilience.” His remarks highlight the dual focus on environmental impact and energy system reliability embedded within Plug Power's operational objectives.
In a separate but related development this month, the company disclosed in a recent filing with the U.S. Securities and Exchange Commission its entry into a contractual agreement with major retailer Walmart Inc. (NASDAQ: WMT). This agreement grants Walmart a contingent, restricted-use license to access certain escrowed GenKey System-related intellectual properties. The precise strategic implications of this licensing arrangement remain to be observed as the partnership evolves.
On market reactions, Plug Power's shares experienced positive momentum, trading up 3.47% to $2.68 during premarket hours on Friday, as reported by Benzinga Pro data. This movement reflects investor attention to the company's project progress and ongoing business developments.
Overall, Plug Power's accomplishments at the Galp Sines Refinery serve as a testament to the company’s technological capabilities and strategic vision in shaping the future of hydrogen energy within the renewable sector. The progression from installation to commissioning will be closely monitored, given its implications for emission reductions and advancement of hydrogen as a mainstream energy carrier in Europe.