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Released January 24, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Hydrogen ecosystem developer Plug Power Incorporated (NASDAQ:PLUG) (Latham, New York), which has been facing liquidity issues, recently finalized a term sheet to receive a $1.6 billion loan from the U.S. Department of Energy (DOE) (Washington, D.C.), which, if agreed to, "would support the development, construction and ownership of up to six hydrogen-production facilities," Chief Executive Andy Marsh said on an investor call Tuesday. Industrial Info is tracking eight projects worth $1.2 billion in the U.S. from Plug Power, as well as a hydrogen plant in Georgia that recently became operational.
Plug Power's project activity includes Power-to-X projects aimed at producing hydrogen utilizing electrolyzers powered by renewable energy, including those that make hydrogen from water (liquid "green" hydrogen). The company stores and delivers green hydrogen and produces hydrogen fuel-cell systems for power material handling operations, fuel cell electric vehicle fleets and other industrial applications.
In reporting its financial results for 2023 in November, Plug Power noted its financial performance was negatively impacted by supply challenges in the North American hydrogen network, and last week, the company disclosed in a filing with the SEC that it plans to sell up to $1 billion in stock to raise more capital. "In light of our projected capital expenditure and operating requirements under our current business plan, we have determined that there is a substantial doubt that we will have sufficient capital to fund our operations (through September 2024)," the company wrote.
Plug Power has yet to turn a profit, and during the first nine months of 2023, it spent $863 million in cash. The company only had $110 million in unrestricted cash as of the end of September, although it reported nearly $200 million in revenue during the third quarter of the year.
In addition to announcing the DOE loan term sheet, Plug Power also said production is underway at its green hydrogen plant in Kingsland, Georgia--which is designed to produce 15 tons per day (TPD) of liquid hydrogen, enough to power approximately 15,000 forklifts per day. "Liquid hydrogen production, in addition to the ongoing gaseous hydrogen production, is expected to positively impact Plug's bottom line and provide an additional step change in fuel margin expansion," the company said in a January 23 press release. The company is exploring an expansion that would increase production to 30 TPD. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here to read related project reports.
In terms of projects under construction, Plug Power and Chart Industries Incorporated (NYSE:GTLS) (Atlanta, Georgia), which provides engineered equipment to the clean-energy and industrial-gas markets, are more than two years into construction on a $600 million green hydrogen plant in Alabama, New York. The plant is expected to produce up to 80 TPD when completed in 2025. Click here to read the detailed project report.
Through a joint venture, Plug Power and Olin Corporation (NYSE:OLN) (Clayton, Missouri) are at work constructing a $85 million green hydrogen liquefaction plant in Saint Gabriel, Louisiana. The plant would liquefy hydrogen from a neighboring Olin plant to produce 15 TPD, and first production is expected to begin in first-quarter 2024. Subscribers can learn more from a detailed project report.
For more information on hydrogen investments in the U.S. and North America, see Industrial Info's January 2, 2024, article - DOE Lists Hydrogen Hubs, Investments in Power Grid and EV Charging as Top 2023 Energy Transition Moves, December 29, 2023, article - Biden Administration Introduces Proposed Rules for 'Clean' Hydrogen Production, and July 5, 2023, article - Hydrogen Investments Are Coming, but North America Is Behind the Curve, IIR Data Show.
Subscribers to Industrial Info's GMI Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Plug Power's project activity includes Power-to-X projects aimed at producing hydrogen utilizing electrolyzers powered by renewable energy, including those that make hydrogen from water (liquid "green" hydrogen). The company stores and delivers green hydrogen and produces hydrogen fuel-cell systems for power material handling operations, fuel cell electric vehicle fleets and other industrial applications.
In reporting its financial results for 2023 in November, Plug Power noted its financial performance was negatively impacted by supply challenges in the North American hydrogen network, and last week, the company disclosed in a filing with the SEC that it plans to sell up to $1 billion in stock to raise more capital. "In light of our projected capital expenditure and operating requirements under our current business plan, we have determined that there is a substantial doubt that we will have sufficient capital to fund our operations (through September 2024)," the company wrote.
Plug Power has yet to turn a profit, and during the first nine months of 2023, it spent $863 million in cash. The company only had $110 million in unrestricted cash as of the end of September, although it reported nearly $200 million in revenue during the third quarter of the year.
In addition to announcing the DOE loan term sheet, Plug Power also said production is underway at its green hydrogen plant in Kingsland, Georgia--which is designed to produce 15 tons per day (TPD) of liquid hydrogen, enough to power approximately 15,000 forklifts per day. "Liquid hydrogen production, in addition to the ongoing gaseous hydrogen production, is expected to positively impact Plug's bottom line and provide an additional step change in fuel margin expansion," the company said in a January 23 press release. The company is exploring an expansion that would increase production to 30 TPD. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here to read related project reports.
In terms of projects under construction, Plug Power and Chart Industries Incorporated (NYSE:GTLS) (Atlanta, Georgia), which provides engineered equipment to the clean-energy and industrial-gas markets, are more than two years into construction on a $600 million green hydrogen plant in Alabama, New York. The plant is expected to produce up to 80 TPD when completed in 2025. Click here to read the detailed project report.
Through a joint venture, Plug Power and Olin Corporation (NYSE:OLN) (Clayton, Missouri) are at work constructing a $85 million green hydrogen liquefaction plant in Saint Gabriel, Louisiana. The plant would liquefy hydrogen from a neighboring Olin plant to produce 15 TPD, and first production is expected to begin in first-quarter 2024. Subscribers can learn more from a detailed project report.
For more information on hydrogen investments in the U.S. and North America, see Industrial Info's January 2, 2024, article - DOE Lists Hydrogen Hubs, Investments in Power Grid and EV Charging as Top 2023 Energy Transition Moves, December 29, 2023, article - Biden Administration Introduces Proposed Rules for 'Clean' Hydrogen Production, and July 5, 2023, article - Hydrogen Investments Are Coming, but North America Is Behind the Curve, IIR Data Show.
Subscribers to Industrial Info's GMI Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
