Plug Continues to Make Substantial Advancement in Hydrogen Generation Buildout
April 23 2024 - 7:00AM
Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive
hydrogen solutions for the green hydrogen economy, has reached
nameplate capacity at the company’s hydrogen plants in Georgia and
Tennessee. With this increased supply from our hydrogen production
network, Plug will benefit from a lower cost of hydrogen, a crucial
step in the company’s roadmap to achieve profitable growth. This is
headlined by the company’s first green hydrogen plant in Georgia
already reaching nameplate capacity of 15 tons per day (TPD) of
liquid hydrogen production, marking a significant milestone for
Plug’s hydrogen network and the hydrogen economy in the U.S.
“As part of our initiative to strengthen
financial performance, we are pleased to make headway in a
two-prong strategy: lower cost sourced hydrogen through capacity
expansions at our Georgia and Tennessee plants coupled with
improved margins through the recalibration of pricing across our
portfolio,” said Andy Marsh, Plug CEO. “We greatly appreciate our
customers' loyalty and commitment to our joint vision for a clean
energy future. Their willingness to work alongside us underscores
the critical role that Plug’s hydrogen products play in their
operations.”
As a part of the company’s efforts to
restructure the business model, Plug implemented price increases
across all its offerings including equipment, service, and fuel.
This recalibration of prices better reflects the value of Plug’s
services, while still offering a strong economic proposition to its
customers; all of which aligns with the company’s strategic focus
on enhancing both cash flow and margins.
Plug has continued to make substantial progress
on building out its North America green hydrogen network to meet
customer demand. The company’s Georgia hydrogen plant, home to the
largest Proton Exchange Membrane (PEM) electrolyzer system in the
U.S., has been running at a stable rate of 15 tons per day (TPD)
since the beginning of the month.
With Plug’s Tennessee plant now operating at
nameplate capacity of 10 TPD, the company has achieved a total
liquid hydrogen capacity of 25 TPD, which can now fulfill
approximately 50% of its customers’ green hydrogen demand. Plug's
cryogenic fleet now consists of 40 trailers which are being filled
and supplying liquid hydrogen to Plug customers across the United
States in material handling operations, fuel cell electric vehicle
fleets, and stationary power applications.
The company’s Louisiana plant (Joint venture
with Olin Corporation) is projected to add 15 TPD of liquid green
hydrogen to Plug’s North American network by the end of Q3 2024.
With the addition of the Louisiana plant, Plug will have 40 TPD of
internal production capacity, meeting the majority of its customers
demand. In addition, the company continues to collaborate with its
key hydrogen supplier in the U.S. Plug is doing substantial work on
other U.S.-based plants and is actively engaged with key strategic
suppliers to facilitate the expansion of its green hydrogen network
and to achieve cost-effectiveness in green hydrogen production at
scale.
“Our green hydrogen ecosystem was built on a
deep understanding of customer needs,” said Sanjay Shrestha, Plug
General Manager, Energy Solutions, and Chief Strategy Officer. “Our
Georgia and Tennessee plants operating at full capacity is a
meaningful step towards continuing to drive cost reduction and
margin enhancement in our fuel business.”
About Plug
Plug is building an end-to-end green hydrogen
ecosystem, from production, storage, and delivery to energy
generation, to help its customers meet their business goals and
decarbonize the economy. In creating the first commercially viable
market for hydrogen fuel cell technology, the company has deployed
more than 69,000 fuel cell systems and over 250 fueling stations,
more than anyone else in the world, and is the largest buyer of
liquid hydrogen.
With plans to operate a green hydrogen highway
across North America and Europe, Plug built a state-of-the-art
Gigafactory to produce electrolyzers and fuel cells and is
developing multiple green hydrogen production plants targeting
commercial operation by year-end 2028. Plug delivers its green
hydrogen solutions directly to its customers and through joint
venture partners into multiple environments, including material
handling, e-mobility, power generation, and industrial
applications.
For more information, visit
www.plugpower.com.
Plug Power Safe Harbor Statement
This communication contains “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995 that involve significant risks and uncertainties
about Plug Power Inc. (“PLUG”), including but not limited to,
statements about: any hydrogen production plant being at nameplate
capacity; this Georgia Plant reaching full production capacity of
15 TPD; this Georgia plant ensuring consistent delivery of green
hydrogen to power the equivalent of 15,000 forklifts per day across
North America; Plug’s ability to expand and scale hydrogen
production throughout North America and around the globe; this
Georgia Plant representing a significant advancement in the
hydrogen industry for making cost-effective green hydrogen at
scale; this hydrogen production milestone being critical in
building out Plug’s North America’s green hydrogen network; Plug
doing work on other U.S.-based hydrogen generation plants; Plug’s
hydrogen activity aiding in cash burn reduction; Plug achieving
goals of cash burn reduction in Q2 2024; this increase of hydrogen
supply leading to lower cost hydrogen and in turn achieving
profitable growth; the recalibration of hydrogen pricing enhancing
both cash flow and margin; Plug’s commitment to enhancing its
liquid green hydrogen production capabilities across the U.S.; and
Plug’s plans of developing multiple green hydrogen production
plants targeting commercial operation by year-end 2028. Such
statements are subject to risks and uncertainties that could cause
actual performance or results to differ materially from those
expressed in these statements. For a further description of the
risks and uncertainties that could cause actual results to differ
from those expressed in these forward-looking statements, as well
as risks relating to the business of PLUG in general, see PLUG’s
public filings with the Securities and Exchange Commission (the
“SEC”), including the “Risk Factors” section of PLUG’s Annual
Report on Form 10-K for the year ended December 31, 2023 and any
subsequent filings with the SEC. Readers are cautioned not to place
undue reliance on these forward-looking statements. The
forward-looking statements are made as of the date hereof, and PLUG
undertakes no obligation to update such statements as a result of
new information.
Plug Media Contact
Fatimah Nouilati
Allison
PlugPR@allisonworldwide.com
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