sitox/E+ via Getty Images

sitox/E+ via Getty Images

Plug Power (NASDAQ:PLUG ) closed +14% on Tuesday following news it was awarded a 1 GW electrolyzer contract with H2 Energy Europe for a planned hydrogen production complex in Denmark, which the company said would be "the largest capacity electrolyzer installation in the world to date."

The contract "helps to cement Plug's role as an early market leader in this emerging product," KeyBanc's Leo Mariani said, according to Bloomberg.

Morgan Stanley analyst Stephen Byrd, who rates Plug (PLUG) at Overweight with a $60 price target, said the order could generate $500M in revenues - and potentially higher - when it is delivered in 2024, TheFly.com reported.

The deal appears to show growing acceptance among investors for green hydrogen, particularly in light of Russia's war in Ukraine that has shifted focus to alternative energy sources; other names in the sector rose Tuesday, including (FCEL) +10% , (BLDP) +6% , (BE) +5.5% .

Plug (PLUG) shares also may have been poised for a bounce after plummeting to two-and-a-half-year lows following a disappointing Q1 earnings report and resulting stock price target cuts from analysts.

Seeking Alpha contributor Simple Investing says Plug Power (PLUG) is "positioned for the exponential growth in green hydrogen," while JR Research sees the company's Q1 results as "nothing short of a disaster... time to sell and move on."