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Released August 09, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--As part of its recent second-quarter earnings results released August 8, Plug Power Incorporated (NASDAQ:PLUG) (Latham, New York) reported progress in its development pipeline.
Plug Power's project activity includes projects aimed at the production of liquid green hydrogen, which utilizes electrolyzers to produce hydrogen from water. Plug also manufactures electrolyzers and hydrogen fuel cells.
"The second quarter of 2024 has been pivotal for Plug Power as we continue to make strides in our strategic initiatives and operational capabilities," said Andy Marsh, chief executive officer of Plug, in an earnings-related press release.
One of those initiatives is a 50:50 joint venture with Olin Corporation (NYSE:OLN) (Clayton, Missouri) for a green hydrogen liquefication plant in Louisiana. Plug Power said it expects commissioning to begin in September and liquid hydrogen generation to begin in the fourth quarter. Olin will supply electrolytic hydrogen from a neighboring plant, to be compressed and liquefied into 15 metric tons per day (TPD) of green hydrogen. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project and Plant databases can click here to read the project report and here to read the plant profile.
The project is a 50:50 joint venture in terms of ownership, but Plug will be responsible for product pricing and marketing.
Another highlight is Plug Power's collaboration with the U.S. Department of Energy (DOE) regarding a conditional loan commitment of $1.66 billion, awarded in May, for the construction of up to six unnamed clean-hydrogen production facilities in the U.S. that would utilize the company's electrolyzer technology. In the earnings call, Chief Financial Officer Paul Middleton said Plug and the DOE meet regularly, and "we've made tremendous progress ... the DOE are clear in their interest in support to get this closed quickly."
The proposed clean hydrogen plants would use electrolyzer stacks manufactured at Plug Power's factory near Rochester, New York. Subscribers can click here for the plant profile.
For more information on the buildout of electrolyzers in the U.S., see June 6, 2024, article - EIA: Electrolyzers Account for a Small but Growing Portion of U.S. Hydrogen Production.
Also in New York, Plug Power is constructing a $600 million green hydrogen plant in the city of Alabama, which is designed to utilize the company's proton exchange membrane (PEM) electrolyzer technology. Chart Industries Incorporated (NYSE:GTLS) (Atlanta, Georgia), which provides engineered equipment to the clean-energy and industrial-gas markets, is providing electrical and instrumentation (E&I) services and liquefaction equipment. Construction was initially planned for two phases, with Phase 1 designed for 45 metric TPD of liquid hydrogen, but Plug Power is re-evaluating the second phase (would bring capacity up to 80 TPD) to determine if the project will be constructed in one phase.
In March, Industrial Info found the project is moving slower than expected but is still tracking the project with a tentative completion date in February 2025. Subscribers can click here to read the project report.
In the earnings call, Plug officials did not discuss specific capital investment (capex) moving forward, but Middleton did say the company expects to "curtail capex" in order to improve its cash burn rate.
The company reported a net loss of $262.3 million in second-quarter 2024, which was "influenced by strategic investments, market dynamics and ~$86 million of non-cash charges such as depreciation and amortization, stock-based compensation, provision for common stock warrants, inventory adjustments, and impairment charges."
However, second quarter revenue was $143.4 million, up from $120.3 million in the first quarter, "reflecting ongoing growth in its electrolyzer deployments and improved pricing on fuel and other product lines." Plug Power expects its 2024 revenue to range between $825 million and $925 million; 2023 revenue was $891 million.
Plug Power specifically pointed to improvement in its hydrogen margins, directly buoyed by increased production capacity at its commercial-scale green hydrogen plant in Woodbine, Georgia--which now has reached its total capacity of 15 metric TPD. Plug Power is developing an expansion at the plant that would bring capacity to 30 TPD, although Industrial Info classifies the project as having a medium probability (81-99%) of beginning construction in November. Click here for the project report and here for the plant profile.
On the earnings call, Middleton said production at the Georgia plant, combined with Plug's re-commissioned plant in Charleston, Tennessee, provides 25 TPD of capacity--close to half of the company's current hydrogen needs. Click here for a profile on the Tennessee plant.
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 projects aimed at the production of liquid green hydrogen, which utilizes electrolyzers to produce hydrogen from water. Plug also manufactures electrolyzers and hydrogen fuel cells.
"The second quarter of 2024 has been pivotal for Plug Power as we continue to make strides in our strategic initiatives and operational capabilities," said Andy Marsh, chief executive officer of Plug, in an earnings-related press release.
One of those initiatives is a 50:50 joint venture with Olin Corporation (NYSE:OLN) (Clayton, Missouri) for a green hydrogen liquefication plant in Louisiana. Plug Power said it expects commissioning to begin in September and liquid hydrogen generation to begin in the fourth quarter. Olin will supply electrolytic hydrogen from a neighboring plant, to be compressed and liquefied into 15 metric tons per day (TPD) of green hydrogen. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project and Plant databases can click here to read the project report and here to read the plant profile.
The project is a 50:50 joint venture in terms of ownership, but Plug will be responsible for product pricing and marketing.
Another highlight is Plug Power's collaboration with the U.S. Department of Energy (DOE) regarding a conditional loan commitment of $1.66 billion, awarded in May, for the construction of up to six unnamed clean-hydrogen production facilities in the U.S. that would utilize the company's electrolyzer technology. In the earnings call, Chief Financial Officer Paul Middleton said Plug and the DOE meet regularly, and "we've made tremendous progress ... the DOE are clear in their interest in support to get this closed quickly."
The proposed clean hydrogen plants would use electrolyzer stacks manufactured at Plug Power's factory near Rochester, New York. Subscribers can click here for the plant profile.
For more information on the buildout of electrolyzers in the U.S., see June 6, 2024, article - EIA: Electrolyzers Account for a Small but Growing Portion of U.S. Hydrogen Production.
Also in New York, Plug Power is constructing a $600 million green hydrogen plant in the city of Alabama, which is designed to utilize the company's proton exchange membrane (PEM) electrolyzer technology. Chart Industries Incorporated (NYSE:GTLS) (Atlanta, Georgia), which provides engineered equipment to the clean-energy and industrial-gas markets, is providing electrical and instrumentation (E&I) services and liquefaction equipment. Construction was initially planned for two phases, with Phase 1 designed for 45 metric TPD of liquid hydrogen, but Plug Power is re-evaluating the second phase (would bring capacity up to 80 TPD) to determine if the project will be constructed in one phase.
In March, Industrial Info found the project is moving slower than expected but is still tracking the project with a tentative completion date in February 2025. Subscribers can click here to read the project report.
In the earnings call, Plug officials did not discuss specific capital investment (capex) moving forward, but Middleton did say the company expects to "curtail capex" in order to improve its cash burn rate.
The company reported a net loss of $262.3 million in second-quarter 2024, which was "influenced by strategic investments, market dynamics and ~$86 million of non-cash charges such as depreciation and amortization, stock-based compensation, provision for common stock warrants, inventory adjustments, and impairment charges."
However, second quarter revenue was $143.4 million, up from $120.3 million in the first quarter, "reflecting ongoing growth in its electrolyzer deployments and improved pricing on fuel and other product lines." Plug Power expects its 2024 revenue to range between $825 million and $925 million; 2023 revenue was $891 million.
Plug Power specifically pointed to improvement in its hydrogen margins, directly buoyed by increased production capacity at its commercial-scale green hydrogen plant in Woodbine, Georgia--which now has reached its total capacity of 15 metric TPD. Plug Power is developing an expansion at the plant that would bring capacity to 30 TPD, although Industrial Info classifies the project as having a medium probability (81-99%) of beginning construction in November. Click here for the project report and here for the plant profile.
On the earnings call, Middleton said production at the Georgia plant, combined with Plug's re-commissioned plant in Charleston, Tennessee, provides 25 TPD of capacity--close to half of the company's current hydrogen needs. Click here for a profile on the Tennessee plant.
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).
