Plug Power gets conditional loan of up to $1.66 billion for hydrogen projects

Hydrogen solutions company Plug Power has received a conditional commitment for an up to $1.66 billion loan guarantee from the U.S. Department of Energy’s (DOE) Loan Programs Office (LPO) to finance the development, construction and ownership of up to six green hydrogen production facilities.

The facilities, which will be selected for financing in accordance with procedures to be set forth in definitive documentation with DOE, will be built across the nation and supply “major” companies, Plug said, adding that the hydrogen generated will be used in applications in the material handling, transportation and industrial sectors.

The company also pointed out that while this conditional commitment represents a significant milestone and demonstrates the DOE’s intent to finance the project, certain technical, legal, environmental and financial conditions, including negotiation of definitive financing documents, must be satisfied before funding of the loan guarantee.

According to Plug, the projects under the loan will adhere to the Biden Administration’s Justice 40 Initiative. This process includes gathering input from local labor, workforce and economic development organizations in addition to first responder and non-profit organizations.

Plug Power CEO Andy Marsh stated: “Green hydrogen is an essential driver of industrial decarbonization in the United States. Earlier this year, Plug successfully demonstrated our innovation and technical ability by launching the first commercial-scale green hydrogen plant in the country in Woodbine, Georgia. This loan guarantee will help us build on that success with additional green hydrogen plants.”

“We appreciate the partnership with the DOE Loan Programs Office and are pleased to have worked through an intensive due diligence process. The loan guarantee will prove instrumental to grow and scale not only Plug’s green hydrogen plant network, but the clean hydrogen industry in the United States.”

​To note, Plug’s current green hydrogen generation network has a liquid hydrogen production capacity of approximately 25 tons per day. The company’s green hydrogen production plants utilize its own electrolyzer stacks manufactured at its gigafactory in Rochester and liquefaction and hydrogen storage systems engineered at its facility in Houston.