Plug Continues to Make Substantial Advancement in Hydrogen Generation Buildout

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Plug Power Inc. continues to expand its hydrogen production capacity in Georgia and Tennessee, with plans for a new plant in Louisiana by the end of Q3 2024. The company has reached nameplate capacity at its existing plants, leading to a lower cost of hydrogen production and improved margins. Plug has recalibrated its pricing strategy to reflect the value of its services while focusing on cash flow and margin expansion. The company's efforts align with its goal of meeting customer demand and strengthening its green hydrogen network in North America.

Positive

• Plug Power Inc. has reached nameplate capacity at its Georgia and Tennessee hydrogen plants, leading to a lower cost of hydrogen production.
• The company's pricing recalibration across its offerings reflects its focus on margin expansion and cash flow improvement.
• Plug's North America green hydrogen network is expanding with plans for a new plant in Louisiana by the end of Q3 2024.
• The company's collaboration with key suppliers and strategic partners aims to enhance cost-effectiveness in green hydrogen production at scale.

Negative

• None.

Energy Market Analyst

Plug Power's achievement of nameplate capacity at its Georgia and Tennessee hydrogen plants signifies a critical operational milestone, as it suggests a significant enhancement in production efficiency. Scaling up capacity directly influences the hydrogen supply chain, potentially reducing the cost of hydrogen—one of the pivotal factors in the adoption of hydrogen fuel cell technologies. With the recalibration of hydrogen pricing, Plug seems to confirm its commitment to competitively position its offerings, which may resonate positively with investors. It's essential to monitor whether such operational advancements translate into improved financial metrics in future quarters, such as EBITDA margins and cash flow from operations.

Environmental Technology Analyst

The expansion of Plug's hydrogen network, alongside strategic price recalibration, underscores the company's ambition to be at the forefront of the green hydrogen economy. Green hydrogen, produced via renewable energy sources, is central to the decarbonization of various industries. Given the increased focus on sustainability and the transition to low-carbon solutions, Plug's advancements may provide it with a first-mover advantage in a nascent market. Furthermore, the investment in a cryogenic fleet to supply liquid hydrogen across the United States is an indicator of operational scalability, which may attract ESG-focused investors seeking to capitalize on the growth of environmentally-friendly energy solutions.

Supply Chain Analyst

The announcement of reaching nameplate capacity denotes Plug's robust supply chain dynamics, particularly in the scale-up of internal production capacity to meet customer demands. The ability of the company to fulfill approximately 50% of its green hydrogen demands internally is a testament to its vertical integration strategy. The optimization of supply chain capabilities, such as the increased cryogenic fleet, can lead to enhanced logistics efficiency and reduced reliance on external suppliers, ultimately contributing to a more resilient business model and potential margin improvements. Investors might appreciate the company's strategic planning in ensuring the reliability and scalability of its supply chain infrastructure.

Having already achieved nameplate capacity at Georgia and Tennessee with Louisiana on track to achieve mechanical completion by end of Q3 2024

Recalibrated hydrogen pricing continues to make solid progress, underscoring strategic nature of Plug’s customer relationships

These initiatives are in line with the company’s previously articulated goals of margin expansion and focus on cash burn reduction

LATHAM, N.Y., April 23, 2024 (GLOBE NEWSWIRE) -- 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

FAQ

What is Plug Power Inc.'s ticker symbol?

Plug Power Inc.'s ticker symbol is PLUG.

What capacity has Plug Power Inc. reached at its Georgia hydrogen plant?

Plug Power Inc. has reached nameplate capacity of 15 tons per day (TPD) at its Georgia hydrogen plant.

What is Plug Power Inc.'s focus with its pricing strategy recalibration?

Plug Power Inc. aims to reflect the value of its services while enhancing cash flow and margins through its pricing recalibration.

How many trailers are in Plug Power Inc.'s cryogenic fleet?

Plug Power Inc.'s cryogenic fleet consists of 40 trailers.

What is Plug Power Inc.'s goal for its Louisiana plant by the end of Q3 2024?

Plug Power Inc.'s Louisiana plant is projected to add 15 tons per day (TPD) of liquid green hydrogen to its North American network by the end of Q3 2024.