Plug to Receive Federal Clean Hydrogen Production Tax Credit at Georgia Hydrogen Facility
June 28 2024 - 7:00AM
Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive
hydrogen solutions for the green hydrogen economy, which began
commercial operation of its electrolytic hydrogen facility in
Woodbine, Ga. earlier this year, intends to recognize the benefits
of the Inflation Reduction Act’s (IRA) Section 45V Credit for the
Production of Clean Hydrogen (PTC) in its forthcoming quarterly
financial reports. Plug will be one of the first producers of clean
hydrogen in the United States that anticipates utilizing this new
incentive enacted by an Act of Congress and signed by President
Biden.
The PTC offers a production credit of up to
$3.00 per kilogram for clean hydrogen (H2) produced in the U.S.,
providing a substantial financial incentive for hydrogen production
in the U.S, substantially lowering the cost of hydrogen production
in the U.S. market. This incentive allows newer, cleaner
technologies, such as electrolytic hydrogen, which is produced from
water, to be more cost competitive with incumbent fossil fuel
technologies.
With the passage of the IRA, the U.S. government
has made it clear that clean hydrogen is essential to decarbonizing
hard-to-abate industries, combat global climate change, improve
U.S. energy security, and build a domestic clean energy
manufacturing economy.
In the case of Plug’s fuel operations and sales
of fuel to its customers, this benefit will provide a meaningful
reduction in the Company’s fuel costs. This benefit is one of the
key factors that will enable Plug to drive overall fuel margin to a
break even run rate by end of the year and positions Plug for
growing positive fuel margins in 2025 and beyond.
"Government support for clean hydrogen is
critical to achieving global mid-century decarbonization goals,”
stated Plug CEO Andy Marsh. “By leveraging these incentives, we can
scale our hydrogen production capabilities and catalyze
industry-wide technological advancements. The use of the PTC will
drive innovation and investment in clean hydrogen solutions, which
are essential for a sustainable future.”
Plug’s 15 ton-per-day (TPD) Georgia facility is
the largest electrolytic liquid hydrogen production plant and
largest PEM electrolyzer in the U.S. representing a landmark
achievement in Plug’s build-out of a vertically integrated hydrogen
ecosystem.
In addition to its hydrogen plant in Georgia,
Plug is expanding its presence with an already existing 10 TPD
plant in Tennessee, and a 15 TPD liquid hydrogen facility in
Louisiana scheduled to be operational by the end of 2024. Plug also
has a pipeline of future plant developments across the United
States and is actively engaged with key strategic suppliers to
facilitate the expansion of its green hydrogen network and to
achieve cost-effectiveness in green hydrogen production at
scale.
Plug intends to fully pursue and utilize the
transformative Section 45V framework as it continues to develop,
construct, and operate hydrogen generation facilities across the
U.S.
About Plug
Plug is building an end-to-end green hydrogen
ecosystem, from production, storage, and delivery to energy
generation, to help its customers meet their business goals and
decarbonize the economy. In creating the first commercially viable
market for hydrogen fuel cell technology, the company has deployed
more than 69,000 fuel cell systems and over 250 fueling stations,
more than anyone else in the world, and is the largest buyer of
liquid hydrogen.
With plans to operate a green hydrogen highway
across North America and Europe, Plug built a state-of-the-art
Gigafactory to produce electrolyzers and fuel cells and is
developing multiple green hydrogen production plants targeting
commercial operation by year-end 2028. Plug delivers its green
hydrogen solutions directly to its customers and through joint
venture partners into multiple environments, including material
handling, e-mobility, power generation, and industrial
applications.
For more information, visit
www.plugpower.com.
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. (“Plug”), including but not limited to statements about:
Plug’s intention to recognize the benefits of the Inflation
Reduction Act’s (IRA) Section 45V Credit for the Production of
Clean Hydrogen (PTC) in its forthcoming quarterly financial
reports; Plug’s expectation that it will be one of the first
producers of clean hydrogen in the United States that anticipates
utilizing this new incentive; Plug’s expectations with respect to
leveraging these incentives, including its expectation that this
benefit will provide a meaningful reduction in its fuel costs, its
expectation that this benefit will enable Plug to drive overall
fuel margin to a break even run rate by end of the year and
positions Plug for growing positive fuel margins in 2025 and
beyond, and its expectation that Plug can scale its hydrogen
production capabilities and catalyze industry-wide technological
advancements; the timing of Plug’s facility in Louisiana becoming
operational; and the pipeline of Plug’s future plant developments
across the United States. 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 (the “SEC”), including the “Risk
Factors” section of Plug’s Annual Report on Form 10-K for the year
ended December 31, 2023, Plug’s Quarterly Report on Form 10-Q for
the quarter ended March 31, 2024 and any subsequent filings with
the SEC. 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 CONTACT
Fatimah Nouilati AllisonplugPR@allisonpr.com
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