Plug Power’s Barrow Project Moves to Construction Phase as Stock’s AI Disconnect Deepens

Plug Power secures final investment decision for Barrow Green Hydrogen plant, but market focus shifts to AI-linked rivals. Stock deeply oversold despite 300% yearly gain.

Plug Power has finally crossed the Rubicon on its first large-scale UK hydrogen project, but the market’s gaze is fixed elsewhere. The company announced that the Barrow Green Hydrogen project in Barrow-in-Furness has secured a final investment decision, pushing the 30?megawatt facility into the construction phase. It marks the first of three planned UK sites to reach that milestone, yet the stock remains mired in short?term turbulence.

Shares were trading at €2.91 on Wednesday, up 1.94% on the day but down 14.03% over the past week. On a 12?month view, the equity has still delivered a near?300% return, a surge that has now cooled sharply. The relative strength index has fallen to 19.9, signalling deeply oversold conditions.

The disconnect between operational progress and market sentiment stems largely from Plug Power’s positioning in the hydrogen sector. Rivals such as Bloom Energy and FuelCell Energy have secured direct ties with AI data centre operators, a fast?growing demand driver that the market currently prizes above all else. Plug Power, by contrast, has focused on hydrogen production, electrolysers, and material handling. While the energy needs of artificial intelligence are exploding, the company has yet to land a high?profile contract with a big tech player.

Solid results, cautious optics

The first quarter of 2026 delivered revenue of $163.5 million, a 22% increase year on year, with notable gross margin improvement. Despite the top?line beat, short sellers remain entrenched. The elevated short interest reflects persistent doubts about the long?term viability of Plug Power’s business model, even as management insists profitability is in sight. CEO Jose Luis Crespo has set a target of positive operating earnings by the fourth quarter of 2026, with full profitability by the end of 2028.

That timeline will require a steady stream of capital. Several anticipated transactions could soon lift the mood. Plug Power expects roughly $39 million from the sale of investment tax credits and another $142 million from a transaction with Stream Data Centers that monetises hydrogen projects. The company’s global project pipeline is valued at over $8 billion.

Barrow: from paper to steel

The Barrow project will use Plug Power’s GenEco PEM electrolysers to generate green hydrogen from renewable electricity. The plant is expected to produce around 100 gigawatt?hours of hydrogen annually. The offtaker is Kimberly?Clark, whose local plant uses brands such as Andrex and Kleenex; the hydrogen will replace up to 50% of the site’s natural gas consumption, cutting CO? emissions by 18,300 tonnes a year.

The electricity supply has been secured via a long?term power purchase agreement with SEFE, adding cost certainty to a key input. Project development is being led by GHECO, a joint venture between Schroders Greencoat and Carlton Power.

Barrow is part of a broader 55?MW framework agreement covering three UK sites. The other two, Trafford and Langage, remain in development. For Plug Power, the conversion of the Barrow pipeline into real construction is a vital proof point. Internationally, the company is pursuing a 25?MW system for a BP?Iberdrola joint venture in Spain, a 100?MW project with Galp in Portugal, and early?stage work on a 275?MW scheme with Hy2gen in Canada.

Cash, calendar and the AI question

At the end of the first quarter, Plug Power held $802 million in liquidity, including restricted cash. The company continues to work on strengthening its balance sheet. Revenue growth for the full year is forecast at 13–15%, with roughly 60% of that expected in the second half. That back?loaded profile puts pressure on execution.

Investors will get the next update at the Craig?Hallum conference on 28 May, followed by the virtual annual general meeting on 11 June. Between now and then, the Barrow announcement provides a tangible measure of forward motion, but the bigger prize — a direct pipeline to the AI?driven data centre boom — remains out of reach. Without a clear win in that market, Plug Power risks being left behind as its hydrogen peers ride the wave. The fourth quarter will show whether the CEO’s profitability promise can be kept.