Plug Power Invests In Airflow In Pursuit Of Carbon-Neutral Aviation

Plug Power Inc 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.