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/Home/default.aspx. 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.
Plug Power Safe Harbor
Statement This communication contains statements that are
not historical facts and are considered forward-looking within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
These statements include, but are not limited to, our expectations
regarding execution of our hydrogen vertical integration strategy,
including entering into definitive acquisition agreements and
closing such acquisitions; that such acquisitions if completed,
would enhance our capabilities in hydrogen generation, liquefaction
and logistics; regarding the amount of hydrogen used by our
customers by 2024; regarding the amount of hydrogen that is green
by 2024; and regarding our ability to guarantee hydrogen supply for
customers, control fuel cost, increase availability to green
hydrogen and improve our fuel business margin and cash flow. These
forward-looking statements contain projections of our future
results of operations or of our financial position or state other
forward-looking information. In some cases you can identify these
statements by forward-looking words such as "anticipate,"
"believe," "could," "continue," "estimate," "expect," "intend,"
"may," "should," "will," "would," "plan," "projected" or the
negative of such words or other similar words or phrases, which are
predictions of or indicate future events or trends and which do not
relate solely to historical matters. We believe that it is
important to communicate our future expectations to our investors.
However, forward-looking statements involve numerous risks and
uncertainties and depend on assumptions, data or methods which may
be incorrect or imprecise. There may be events in the future that
we are not able to accurately predict or control and that may cause
our actual results to differ materially from the expectations we
describe in our forward-looking statements. Investors are cautioned
not to unduly rely on forward-looking statements. Actual results
may differ materially from those discussed as a result of various
factors, including, but not limited to: 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 a loss of one or more of our major customers,
or if one of our major customers delays payment of or is unable to
pay its receivables, a material adverse effect could result 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 the use of
flammable fuels in our products; the risk that pending orders may
not convert to purchase orders, in whole or in part; the cost and
timing of developing, marketing and selling our products; the risks
of delays in or not completing our product development goals; our
ability to obtain financing arrangements to support the sale or
leasing of our products and services to customers; our ability to
achieve the forecasted gross margin on the sale of our products;
the cost and availability of fuel and fueling infrastructures for
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; market acceptance of our products and services,
including GenDrive, GenSure and GenKey systems; 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
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; the risks
associated with volatility in the economy, market trends and other
conditions affecting the probability and financial stability of our
customers; and the impact of the COVID-19 pandemic on our business,
including the impact on our third party suppliers and customers and
our ability to continue to attract and retain customers. The risks
and uncertainties included here are not exhaustive, and additional
factors could adversely affect our business and financial
performance, including factors and risks referenced under "Risk
Factors" of this prospectus supplement and in the accompanying
prospectus or any free writing prospectus provided in connection
with this offering and any documents incorporated by reference
herein or therein, including our Annual Report on Form 10-K for the
year ended December 31, 2019 as well as any amendment or update to
our risk factors reflected in subsequent filings with the SEC. We
operate in a very competitive and rapidly changing environment. New
risk factors emerge from time to time and it is not possible for
management to predict all such risk factors, nor can we assess the
impact of all such risk factors on our business or the extent to
which any factor, or combination of factors, may cause actual
results to differ materially from these contained in any
forward-looking statements. While forward-looking statements
reflect our good faith beliefs, they are not guarantees of future
performance. These forward-looking statements speak only as of the
date on which the statements were made. Except as may be required
by applicable law, we do not undertake or intend to update any
forward-looking statements after the date of this
communication.
SOURCE: PLUG POWER
Media Contact Ian MartoranaThe
Bulleit Group(415) 237-3681plugpowerPR@bulleitgroup.com
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