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Plug Power Snags $1.7 Billion DOE Loan Guarantee For Hydrogen Plants
PLUGPlug Power(PLUG) Forbes·2025-01-17 00:26

Core Insights - Plug Power has received a 1.66billionloanguaranteefromtheEnergyDepartmenttoconstructlarge−scalehydrogenplantsaimedatsupplyingindustrialcustomersandpoweringemission−freeforklifts[2][4]−ThefundingwillenabletheconstructionofuptosixfacilitiesintheU.S.,withthefirstbeingagreenhydrogenplantinGraham,Texas,capableofproducing45tonsofhydrogenperday[3][4]−Thehydrogenproducedwillqualifyforaproductiontaxcreditofupto1.66 billion loan guarantee from the Energy Department to construct large-scale hydrogen plants aimed at supplying industrial customers and powering emission-free forklifts [2][4] - The funding will enable the construction of up to six facilities in the U.S., with the first being a green hydrogen plant in Graham, Texas, capable of producing 45 tons of hydrogen per day [3][4] - The hydrogen produced will qualify for a production tax credit of up to 3 per kilogram, enhancing the project's financial viability [3] Company Strategy - The loan is seen as a means to support customers with cost-effective fuels and to attract equity investors, similar to financing models used in solar and wind energy [4] - Plug Power's customer base includes major companies like Amazon and Walmart, which utilize hydrogen for emission-free forklifts, and the company is exploring projects with Microsoft [5] Market Context - The Biden Administration has prioritized clean energy technologies, including hydrogen, under the Bipartisan Infrastructure Law and Inflation Reduction Act, although future support under a potential Trump Administration remains uncertain [4][6] - Plug Power's projects are primarily located in Republican states, which may influence continued support for hydrogen as part of energy security and job creation strategies [6][7] Financial Impact - Following the announcement of the DOE loan guarantee, Plug Power's shares rose approximately 3.7% to $2.84 in after-hours trading [7]