Plug Power, a leading hydrogen fuel cell company, announced on Tuesday significant strides in its operations, propelling its shares to a 20% increase in morning trading. The company revealed it is on the verge of securing a substantial government loan exceeding $1 billion and has commenced the production of liquid green hydrogen at its Georgia facility.
The firm has completed term sheet negotiations with the U.S. Department of Energy (DoE) for a loan facility worth $1.6 billion. This application is now under the final review by the Credit Review Board, awaiting a conditional commitment.
This development comes at a crucial time for Plug Power, which had previously expressed concerns over liquidity amid the tight liquid hydrogen market in North America and had even flagged potential going concern issues last November. Furthermore, the company had initiated a $1 billion equity raise earlier this month to bolster its finances.
"This funding, when received, will support the development, construction, and ownership of up to six hydrogen production facilities, significantly advancing green hydrogen deployment in the United States," CEO Andrew Marsh stated during an investor call. He also noted the operational start of the Georgia plant and the upcoming Tennessee plant as key factors in reducing production costs.
Despite the slightly delayed construction of the Georgia facility, Marsh emphasized its importance in enhancing Plug Power's liquid hydrogen supply to customers across various applications, including material handling operations, fuel cell electric vehicle fleets, and stationary power. This plant is now recognized as the largest liquid green hydrogen production facility in the U.S., with a capacity of 15 tons per day of liquid electrolytic hydrogen.
Analysts have viewed the DoE loan facility favorably, though final approvals are anticipated in the second half of 2024. "The DoE loan facility seems well baked, but we have to wait until the second half of 2024. Seems they are getting the finance options they need and wiggling out of a very tight spot," commented Craig Irwin of Roth Capital Partners.
The move towards green hydrogen production by companies like Plug Power aligns with the broader industry trend of achieving net-zero emissions. Hydrogen, which emits no pollutants at the point of use, is increasingly seen as both a sustainable fuel and an energy storage solution, aiding companies in reducing their carbon footprint.
Plug Power's advancements in green hydrogen production are not just a win for the environment but also poised to positively impact the company's financial health and contribute to a significant expansion in fuel margin.
Samira is an Electronics and Communications Engineer by profession, but deep inside, her heart is a nomad! She's a state champion debater, a public speaker, a scriptwriter, a theatre actress, but most importantly — A GREEN CITIZEN! She thinks of herself as a storyteller who thrives on enjoying the life at fullest and telling everyone the tales of life.
Renewable Energy ,
Plug Power Secures Govt Loan, Liquid Green Hydrogen Production Starts
by : Samira Tasneem | Published: February 14, 2024
Shares of Plug Power surge 20% as it eyes a $1.6 billion government loan and begins liquid green hydrogen production in Georgia.
Plug Power, a leading hydrogen fuel cell company, announced on Tuesday significant strides in its operations, propelling its shares to a 20% increase in morning trading. The company revealed it is on the verge of securing a substantial government loan exceeding $1 billion and has commenced the production of liquid green hydrogen at its Georgia facility.
The firm has completed term sheet negotiations with the U.S. Department of Energy (DoE) for a loan facility worth $1.6 billion. This application is now under the final review by the Credit Review Board, awaiting a conditional commitment.
This development comes at a crucial time for Plug Power, which had previously expressed concerns over liquidity amid the tight liquid hydrogen market in North America and had even flagged potential going concern issues last November. Furthermore, the company had initiated a $1 billion equity raise earlier this month to bolster its finances.
Despite the slightly delayed construction of the Georgia facility, Marsh emphasized its importance in enhancing Plug Power's liquid hydrogen supply to customers across various applications, including material handling operations, fuel cell electric vehicle fleets, and stationary power. This plant is now recognized as the largest liquid green hydrogen production facility in the U.S., with a capacity of 15 tons per day of liquid electrolytic hydrogen.
Analysts have viewed the DoE loan facility favorably, though final approvals are anticipated in the second half of 2024. "The DoE loan facility seems well baked, but we have to wait until the second half of 2024. Seems they are getting the finance options they need and wiggling out of a very tight spot," commented Craig Irwin of Roth Capital Partners.
The move towards green hydrogen production by companies like Plug Power aligns with the broader industry trend of achieving net-zero emissions. Hydrogen, which emits no pollutants at the point of use, is increasingly seen as both a sustainable fuel and an energy storage solution, aiding companies in reducing their carbon footprint.
Plug Power's advancements in green hydrogen production are not just a win for the environment but also poised to positively impact the company's financial health and contribute to a significant expansion in fuel margin.
More inspiring green news similar to this:
Samira Tasneem
Samira is an Electronics and Communications Engineer by profession, but deep inside, her heart is a nomad! She's a state champion debater, a public speaker, a scriptwriter, a theatre actress, but most importantly — A GREEN CITIZEN! She thinks of herself as a storyteller who thrives on enjoying the life at fullest and telling everyone the tales of life.
Quick Links
Green Living Guides
Green Jobs
Inspiring Green News
Green Directory
Green Store
Electronics Recycling