LATHAM, N.Y. — Plug Power Inc. (NASDAQ: PLUG), a leading provider of hydrogen engines and fueling solutions enabling e-mobility, has successfully completed one of the largest bought equity deal transactions in the broader clean-tech sector.
This marks Plug Power’s largest capital raise in the Company’s history with approximately $1 billion of capital, bringing total cash post-closing balance to $1.7 billion. The capital raise uniquely positions Plug Power to execute and accelerate on its green hydrogen strategy as well as other strategic growth initiatives.
Plug Power recently announced its plans to build five regional green hydrogen facilities in the United States. The Company will continue to work with strategic partners, including Apex Clean Energy and Brookfield Renewable, to source low-cost renewable power. The combination of low-cost renewables, strong capital position, and in house electrolyzer and liquefaction technology all uniquely position Plug Power to build out this green hydrogen network. Furthermore, Plug Power has already become the largest user of liquid hydrogen with its internal demand increasing from the current 40TPD (tons per day), to 100TPD by 2024.
The first two green hydrogen plants are expected to be operational in 2022. All five plants are expected to be operational by 2024, with a total capacity of 100TPD. This would constitute the country’s first nationwide green hydrogen network. The green hydrogen generated by this network will support the mission to decarbonize the broader transportation and logistics industries, a mission shared by both Plug Power and its customers. The Company’s unmatched industry position as a total solutions provider will also help facilitate the anticipated rapid growth of the hydrogen economy. According to consultancy McKinsey & Company, the global hydrogen economy could reach $2.5 trillion by 2050, representing 18% of the global energy demand.
“We are very pleased with the reception from the institutional investors and the market resulting in a meaningfully upsized capital raise. This ideally positions Plug Power to accelerate the growth of the green hydrogen economy in the United States and globally, a job we wholeheartedly accept,” said Andy Marsh, CEO of Plug Power. “Green hydrogen provides one of the lowest carbon emission solutions from a wells-to-wheels perspective serving a variety of different industries.”
“We have identified several locations working with strategic partners where we can produce green hydrogen at parity with grey hydrogen and see further opportunities to reduce the cost of green hydrogen. Furthermore, this recently completed capital raise and in house capabilities ideally positions us to accelerate the build-out of this green hydrogen network,” said Sanjay Shrestha, Chief Strategy Officer and head of Plug Power’s green hydrogen generation business.
Read More News About Plug Power:
- Plug Power Reports a Record Third Quarter in the Company’s History
- Plug Power Develops New GenDrive Products for The European Market
- Plug Power to Source 100% Renewable Energy From Brookfield Renewable to Fully Power One of North America’s First ‘Green’ Hydrogen Production Facilities
About Plug Power
Plug Power is building the hydrogen economy as the leading provider of comprehensive hydrogen fuel cell (HFC) 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 providing efficiency gains and 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 38,000 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.