Plug Power Raises Approximately $1B to Accelerate the First Nation-Wide Green Hydrogen Network
November 24 2020 - 8:30AM
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
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.
About Plug PowerPlug 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.
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.
Safe Harbor Statement
This press release contains "forward-looking statements" within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995 that involve significant
risks and uncertainties about Plug Power Inc. ("PLUG"), including
but not limited to statements about PLUG's expectations regarding
the capital raise positioning PLUG to execute and accelerate on its
green hydrogen strategy as well as other strategic growth
initiatives, expectations regarding the timing of the operations of
PLUG’s hydrogen plants and the size of the use and demand for
liquid hydrogen, PLUG’s ability to work with strategic partners to
source low-cost renewable power and drive down the cost of
renewable power and green hydrogen, and expectations regarding
PLUG’s technology facilitating the rapid growth of the hydrogen
economy. 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. For a further description of
the risks and uncertainties that could cause actual results to
differ from those expressed in these forward-looking statements, as
well as risks relating to the business of PLUG in general, see
PLUG’s public filings with the Securities and Exchange Commission,
including the “Risk Factors” section of PLUG’s Annual Report on
Form 10-K for the year ended December 31, 2019 and Quarterly
Reports on Form 10-Q for the quarters ended March 31, 2020, June
30, 2020 and September 30, 2020. Readers are cautioned
not to place undue reliance on these forward-looking statements.
The forward-looking statements are made as of the date hereof, and
PLUG undertakes no obligation to update such statements as a result
of new information.
Media ContactIan MartoranaThe Bulleit
Group(415) 237-3681plugpowerpr@bulleitgroup.com
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