Plug Power (NASDAQ: PLUG) stock jumped in pre-market trading Monday after the fuel cell company revealed plans to utilize the Federal Clean Hydrogen Tax credit at a Georgia hydrogen facility.
Plug Power has announced its intention to capitalize on the benefits of the Inflation Reduction Act’s (IRA) Section 45V Credit for the Production of Clean Hydrogen (PTC) in its upcoming quarterly financial reports. This move positions Plug as one of the first clean hydrogen producers in the United States to utilize this new federal incentive, enacted by Congress and signed by President Biden.
Under the IRA, the PTC offers a production credit of up to $3.00 per kilogram for domestically produced clean hydrogen, aiming to significantly enhance the competitiveness of hydrogen production in the U.S. market. This incentive is pivotal in making newer, cleaner technologies like electrolytic hydrogen, produced from water, more economically viable than traditional fossil fuel technologies.
Plug Power stands to benefit substantially from these incentives, anticipating a notable reduction in fuel costs across its operations and fuel sales. This financial advantage will help the company achieve a break-even fuel margin by the end of this year, with prospects for positive margins in 2025 and beyond.
Andy Marsh, CEO of Plug Power, emphasized the critical role of government support in advancing clean hydrogen technologies to meet global decarbonization targets. Marsh stated,
“By leveraging these incentives, we can scale our hydrogen production capabilities and catalyze industry-wide technological advancements. The PTC use will drive innovation and investment in clean hydrogen solutions, essential for a sustainable future.”
Plug Power Expands Hydrogen Production Network
Plug Power (NASDAQ: PLUG), a pioneer in electrolytic hydrogen production, commenced commercial operations at its 15-ton-per-day (TPD) facility in Woodbine, Georgia earlier this year. This facility represents the largest electrolytic liquid hydrogen plant and PEM electrolyzer in the U.S., pivotal in Plug’s vertically integrated hydrogen ecosystem development.
In addition to its Georgia facility, Plug Power is expanding its footprint with a 10 TPD plant in Tennessee and a 15 TPD liquid hydrogen facility in Louisiana, commencing operations by the end of 2024. The company is also actively developing future plant projects across the U.S., collaborating with strategic partners to expand its green hydrogen network and achieve cost-effective green hydrogen production at scale.
Plug Power commits to fully utilizing the transformative Section 45V framework as it continues developing, constructing, and operating hydrogen generation facilities across the U.S.
Plug Power (NASDAQ: PLUG) Stock Movement
As of 08:25 a.m. (Eastern Time) Monday, PLUG stock traded at $2.36, marking a 1.28% increase compared to the previous trading session.
