Plug Power Inc. (NASDAQ: PLUG), a leading provider of hydrogen
engines and fueling solutions enabling e-mobility, has completed
the acquisitions of United Hydrogen Group Inc. and Giner ELX These
acquisitions are in line with the Company’s vertical integration
strategy in the hydrogen business laid out in September of 2019
with plans to have more than 50% of the hydrogen used to be green
by 2024. These activities further enhance Plug Power’s position in
the hydrogen industry with capabilities in generation, liquefaction
and distribution of hydrogen fuel complementing its
industry-leading position in the design, construction, and
operation of customer-facing hydrogen fueling stations. These
activities establish a clear pathway for Plug Power to transition
from low-carbon to zero-carbon hydrogen solutions.
Given these acquisitions, the Company is raising its 2024
financial targets to achieve $1.2 billion in revenue (up from $1
billion), $210 in operating income (up from $170 million), and $250
million in Adjusted EBITDA (up from $200 million). These improved
financial metrics highlight the value of this vertical integration,
underscoring significant margin enhancement potential in the
hydrogen fuels business and the expected global growth of the
electrolyzer market while meeting customers increased focus on
sustainability and carbon reduction goals. Plug Power is focused on
becoming one of the largest green hydrogen generation companies in
the United States over the next five years and globally thereafter,
and plans to continue to work with existing and new partners to
accomplish this goal.
This planned capacity addition of green hydrogen will serve the
significant and rapidly growing demand from current customers as
well as position the Company to target existing large and growing
hydrogen markets. Plug Power projects that its existing customers
will use almost 100 tons of hydrogen per day by 2024 and expects
over 50% of that to be green hydrogen. This planned green hydrogen
generation capacity expansion provides Plug Power with an
opportunity to serve its existing customers and potentially serve
large industrial customers in the steel, fertilizer and ammonia
manufacturing markets. According to Bloomberg New Energy Finance,
the cost of green hydrogen is expected to decline by over 50% by
2030 and will be at parity with traditional ways of producing
hydrogen today.
Today, United Hydrogen is one of the largest privately held
merchant hydrogen producers in North America. The company has the
capability to produce 6.4 tons of hydrogen each day with plans to
increase that capacity to 10 tons daily in the near future, as well
as plans for further expansion. Bringing a wealth of talent and
expertise, the acquisition of United Hydrogen Group significantly
enhances Plug Power’s capabilities in hydrogen generation,
liquefaction and distribution logistics.
Giner ELX includes one of the most experienced teams in the
world in PEM electrolysis: most have worked for two decades or more
in the field. The company’s offerings include one of the world’s
largest, most efficient and cost-effective PEM hydrogen generators;
grid-level renewable energy storage solutions, and on-site hydrogen
generation systems for fuel cell vehicle refueling stations and
industrial uses. Giner ELX also has a strong sales channel in the
European market. Plug Power expects the Giner ELX acquisition to
dramatically increase its overall green hydrogen supply
capabilities and the Company can add significant manufacturing
capabilities immediately to serve the global market for
electrolyzers.
“Plug Power is working to build the modern clean hydrogen
economy,” said Plug Power CEO, Andy Marsh. “Every decision we make
is with an eye to the future, not the past. This closely aligns
with the efforts that companies like United Hydrogen and Giner ELX
have made to secure broad participation in the hydrogen economy,
and to achieve the objectives of a clean environment and reduced
dependence on foreign oil. We welcome these organizations into the
Plug Power family where, as a team, we can accelerate the adoption
of low carbon and zero carbon hydrogen on a global scale.”
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 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.
Non-GAAP Financial Measure
Management uses Adjusted EBITDA, which is a non-GAAP measure, to
supplement the Company’s unaudited financial data presented on a
generally accepted accounting principles (“GAAP”) basis.
Adjusted EBITDA is defined as operating income, as forecasted, plus
stock-based compensation, plus depreciation and amortization.
With respect to the forward‐looking guidance, no reconciliation
between Adjusted EBITDA and operating income, the most comparable
GAAP measure, is included in this press release because the Company
is unable to quantify certain amounts that would be required to be
included in the GAAP measure without unreasonable efforts and the
Company believes such reconciliations would imply a degree of
precision that would be confusing or misleading to investors.
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., including but not limited to statements about our
expectations regarding the effects of the acquisitions on our
company, including our 2020 full-year revenue target and 2024
financial targets; capabilities in hydrogen generation,
liquefaction and logistics; moving the hydrogen economy from
low-carbon to zero-carbon solutions; reduction in the cost of
hydrogen; the amount of hydrogen used by our customers by 2024; the
amount of hydrogen that is green by 2024; expansion of United
Hydrogen’s hydrogen production capacity; and Giner ELX increasing
our overall green hydrogen supply capabilities and growing our
servable addressable market. You are cautioned that such
statements should not be read as a guarantee of future performance
or results, and will not necessarily be accurate indications of the
times that, or by which, such performance or results will have been
achieved. Such statements are subject to risks and uncertainties
that could cause actual performance or results to differ materially
from those expressed in these statements. In particular, the risks
and uncertainties include, among other things, the risk that we
continue to incur losses and might never achieve or maintain
profitability; the risk that we will need to raise additional
capital to fund our operations and such capital may not be
available to us; the risk of dilution to our stockholders and/or
stock price should we need to raise additional capital; the risk
that our lack of extensive experience in manufacturing and
marketing products may impact our ability to manufacture and market
products on a profitable and large-scale commercial basis; the risk
that unit orders may not ship, be installed and/or converted to
revenue, in whole or in part; the risk that pending orders may not
convert to purchase orders, in whole or in part; the risk that a
loss of one or more of our major customers, or the delay or
inability of payment by one of our customers, could result in a
material adverse effect on our financial condition; the risk that a
sale of a significant number of shares of stock could depress the
market price of our common stock; the risk that our convertible
senior notes, if settled in cash, could have a material effect on
our financial results; the risk that our convertible note hedges
may affect the value of our convertible senior notes and our common
stock; the risk that negative publicity related to our
business or stock could result in a negative impact on our stock
value and profitability; the risk of potential losses related to
any product liability claims or contract disputes; the risk of loss
related to an inability to maintain an effective system of internal
controls; our ability to attract and maintain key personnel;
the risks related to use of flammable fuels in our products; the
cost and timing of developing, marketing and selling our
products; our ability to obtain financing arrangements to
support the sale or leasing of our products and services to
customers; the ability to achieve the forecasted gross margin on
the sale of our products; the risks, liabilities and costs related
to environmental, health and safety matters; the risk of
elimination of government subsidies and economic incentives for
alternative energy products; the cost and availability of fuel and
fueling infrastructures for our products; market acceptance of our
products and services, including GenDrive, GenSure and GenKey
systems; the volatility of our stock price; our ability to
establish and maintain relationships with third parties with
respect to product development, manufacturing, distribution and
servicing and the supply of key product components; the cost and
availability of components and parts for our products; general
global economic and political conditions that harm the worldwide
economy, disrupt our supply chain, increase material costs or
reduce demand for our component products (including changes in the
level of gross domestic product in various regions of the world,
natural disasters, terrorist act, global conflicts and public
health crises such as the coronavirus); the risk that possible new
tariffs could have a material adverse effect on our business; our
ability to develop commercially viable products; our ability to
reduce product and manufacturing costs; our ability to successfully
expand our product lines; our ability to successfully market,
distribute and service our products and services internationally;
our ability to improve system reliability for our products;
competitive factors, such as price competition and competition from
other traditional and alternative energy companies; our ability to
protect our intellectual property; the risk of dependency on
information technology on our operations and the failure of such
technology; the cost of complying with current and future federal,
state and international governmental regulations; our subjectivity
to legal proceedings and legal compliance; the risks associated
with past and potential future acquisitions; the volatility of our
stock price; and other risks and uncertainties referenced in our
public filings with the Securities and Exchange Commission (the
“SEC”). For additional disclosure regarding these and other risks
faced by us, see disclosures contained in our public filings with
the SEC including, the "Risk Factors" section of our Annual Report
on Form 10-K for the year ended December 31, 2019, Quarterly Report
on Form 10-Q for the quarter ended March 31, 2020 as well as any
amendment or update to our risk factors reflected in subsequent
filings with the SEC. You should consider these factors in
evaluating the forward-looking statements included in this press
release and not place undue reliance on such statements. The
forward-looking statements are made as of the date hereof, and we
undertake no obligation to update such statements as a result of
new information.
SOURCE: PLUG POWER
Media Contact Ian MartoranaThe Bulleit
Group(415) 237-3681plugpower@bulleitgroup.com
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