What Is Going On With Plug Power Stock?

Plug Power Inc (NASDAQ: PLUG) shares closed over 5% lower in the regular session Monday.

What Happened: The shares fell despite an announcement on the day that the company was partnering with Chart Industries, Inc (NYSE: GTLS) and Baker Hughes (NYSE: BKR) to become “cornerstone investors” in the formation of a “unique” new clean-hydrogen-only private infrastructure fund dubbed FiveT Hydrogen Fund.

The fund will be dedicated to delivering clean hydrogen infrastructure projects at scale, according to a Plug Power statement.

While Plug Power says it intends to commit EUR 160 million ($200 million), Chart Industries, a global equipment manufacturer for energy and industrial gas markets,  and Baker Huges, an energy technology company,  will pitch in EUR 50 million ($60 million) respectively.

The Fund will “exclusively finance projects” in the production, storage, and distribution of clean hydrogen, according to the statement.

See also: How to Buy Plug Power (PLUG) Stock

FiveT, denominated in Euros, will be offered only to qualifying and verified investors and is aiming to raise EUR 1 billion ($1.18 billion) from both financial and industrial investors, as per Plug Power.

The initial investment only covers 26% of the fund’s stated fundraising goal.

Why It Matters: Last week, Plug Power’s shares jumped 10.6% higher after the hydrogen solutions company announced plans to build a green hydrogen production plant in cooperation with Brookfield Renewable Partners L.P. (NYSE: BEP) and Brookfield Renewable Corporation (NYSE: BEPC). 

Price Action: Plug Power shares closed 5.16% lower at $33.44 on Monday and gained 0.18% in the after-hours session. 

Benzinga’s Take: The fact that FiveT will provide finance to projects or prospective customers raises a concern on the demand for clean hydrogen products and that could be a potential reason for investors to be less than enthusiastic about the announcement.