Plug Power Pact Lifts Fuel Cell Makers

Plug Power Inc's PLUG $20 million contract with a major North American telecommunications provider it didn't name helped lift shares of two competitors.

Plug gained more than 9 percent to $3.83 Thursday while Ballard Power Systems Inc. (USA) BLDP rose nearly 4 percent to $2.20 and FuelCell Energy Inc FCEL gained 3 percent to $1.72. Shares have since started to sell off.

Plug's contract is through its Spokane, Washington-based ReliOn unit, acquired in April for $4 million in stock. The deal marked Plug's expansion into the stationary back-up fuel cell market, where ReliOn had already seen success with customers like AT&T, Sprint and Verizon.

Plug, which has mostly provided fuel cells for warehouse forklifts, hasn't turned a profit since its inception in 1997.

Plug last month disappointed Wall Street when its third-quarter revenue of $19.9 million missed expectations by 51 percent.

Yet Plug's shares are up nearly 150 percent year-to-date. Ballard is up 43 percent and FuelCell has gained nearly 20 percent.