Plug Power Skyrockets with $1.7B US Backing

May 15, 2024 12:39 PM ET
  • Plug Power's stock skyrockets as Biden administration backs $1.66B loan guarantee for green hydrogen expansion, aligning with climate goals.
Plug Power Skyrockets with $1.7B US Backing

Hydrogen producer Plug Power Inc. saw its stock soar after the Biden administration offered the company a conditional commitment for $1.66 billion in loan guarantees to build up to six facilities. The financing is crucial for Plug's growth plans, as it has faced financial challenges in the past year while developing its production capacity. The Energy Department financing aligns with the Biden administration's goal of using hydrogen to achieve climate goals and decarbonize heavy industries like steel and cement.

Plug Power CEO Andy Marsh stated that the loan guarantee will be instrumental in growing not only Plug's green hydrogen plant network but also the clean hydrogen industry in the United States. The company plans to use the funding to complete an industrial-scale green hydrogen plant near Beaumont, Texas by 2025, which will be three times larger than its current Georgia facility. The government support is expected to ease investors' concerns and help advance Plug's long-term hydrogen ambitions.

How will Plug Power utilize $1.66 billion loan guarantee for hydrogen production expansion?

  • Plug Power will utilize the $1.66 billion loan guarantee to build up to six hydrogen production facilities.
  • The funding will help Plug Power expand its green hydrogen plant network in the United States.
  • The company plans to complete an industrial-scale green hydrogen plant near Beaumont, Texas by 2025, which will be three times larger than its current Georgia facility.
  • Plug Power CEO Andy Marsh believes the loan guarantee will not only benefit Plug Power but also help grow the clean hydrogen industry in the United States.
  • The government support is expected to ease investors' concerns and advance Plug Power's long-term hydrogen ambitions
  • The Energy Department financing aligns with the Biden administration's goal of using hydrogen to achieve climate goals and decarbonize heavy industries like steel and cement.
Source:
bloomberg.com

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