Hydrogen strategy targets over 50% of green hydrogen usage by 2024
LATHAM, N.Y.– Plug Power Inc. (NASDAQ: PLUG), a leading provider of hydrogen engines and fueling solutions enabling e-mobility, is pleased to launch the first ever convertible green bond offering in the US.
The net proceeds from the convertible green bond offering will fund, among other things, strategic initiatives that underpin the Company’s green hydrogen strategy, as well as the repurchase of previously issued notes whose proceeds were used to fund such strategic purposes. These initiatives include targeted acquisitions in hydrogen generation, liquefaction, and distribution. This capital raise positions us well to execute on our hydrogen vertical integration strategy and we are very pleased to be able to target investors with ESG mandates.
“Plug Power is committed to having over 50% of hydrogen to be green by 2024 and providing customers with a cost-effective supply of low and zero carbon hydrogen,” said Andy Marsh, CEO of Plug Power. “In addition, according to multiple industry sources, levelized cost of green hydrogen is expected to decline by about 50% by 2030 and be at parity with cost of producing hydrogen from traditional steam methane reforming process.”
“Hydrogen is expected to be one of the fastest growing segments of the energy industry, representing as much as 18% of the energy mix in 2050. Plug Power is very pleased to be at the center of the paradigm shift in energy, transportation and power industries.”
Plug Power’s strategic objectives align with industry projections set by McKinsey that hydrogen could provide:
- 18% of final energy demand: Avoids the consumption of more than 20 million barrels of oil per day compared to today’s energy composition. It would radically decrease the need and energy required to transport fossil fuels across the world and increase self-reliance and energy security.
- 6Gt annual CO2 abatement: In end-use applications, it eliminates local emissions such as sulfur oxides, nitrogen oxides, and particulates, which are linked to smog formation and cause an estimated 3 million premature deaths annually.
- 30MM jobs created: The application of hydrogen at this scale creates a revenue potential of more than $2.5 trillion per year.
“We are very pleased to see significantly increasing investor interest in sustainability bonds,” said Paul Middleton, CFO. “Our intent is that this green bond will provide the opportunity for a broad investor audience to participate in our sustainability efforts to grow the green hydrogen economy.”
Additional investor information on the green bond and Sustainalytics second-party opinion on the Green Bond Framework is available on the Plug Power website at www.ir.plugpower.com Sustainalytics is a leading investment research and ratings firm dedicated to responsible investment and ESG research.
About Plug Power
Plug Power is building the hydrogen economy as the leading provider of comprehensive hydrogen fuel cell turnkey solutions. The company’s innovative technology powers electric motors with hydrogen fuel cells amid an ongoing paradigm shift in the power, energy, and transportation industries to address climate change and energy security, while meeting sustainability goals.
Plug Power created the first commercially viable market for hydrogen fuel cell (HFC) technology. As a result, the company has deployed over 32,000 fuel cell systems for e-mobility, more than anyone else in the world, and has become the largest buyer of liquid hydrogen, having built and operated a hydrogen highway across North America. Plug Power delivers a significant value proposition to end-customers, including meaningful environmental benefits, efficiency gains, fast fueling, and lower operational costs.
Plug Power’s vertically-integrated GenKey solution ties together all critical elements to power, fuel, and provide service to customers such as Amazon, BMW, The Southern Company, Carrefour, and Walmart. The company is now leveraging its know-how, modular product architecture and foundational customers to rapidly expand into other key markets including zero-emission on-road vehicles, robotics, and data centers.