Plug Power (NASDAQ: PLUG) stock surged almost 20% in intraday trading Tuesday after the green hydrogen producer announced receiving a conditional $1.66 billion loan guarantee from the U.S. Department of Energy to expand its green hydrogen facilities.
Plug Power (PLUG) recently announced that it has received a conditional U.S. government loan guarantee valued at up to $1.66 billion to fuel its expansion efforts. The company revealed that the funds provided by the Department of Energy (DOE) will resort to “finance the development, construction, and ownership of up to six green hydrogen production facilities.”
Green hydrogen, produced through electrolysis using renewable electricity to split water molecules, offers a significantly lower carbon footprint than traditional “gray” hydrogen production methods, which rely on fossil fuels like natural gas.
Plug Power plans to strategically position new facilities nationwide to serve major clients, including current ones. It explained that the green hydrogen produced will find applications in material handling, transportation, and industrial sectors.
The company highlighted its significant track record in deploying hydrogen fuel cell systems, with over 69,000 systems and 250+ fueling stations already in operation. It also underlined its position as the largest purchaser of liquid hydrogen globally.
Andy Marsh, CEO of Plug Power, emphasized the pivotal role of green hydrogen in industrial decarbonization in the United States. The DOE echoed this sentiment in its announcement, stating,
“The conditional loan will help unlock the full potential of this versatile fuel and support the growth of a strong, American-led industry that ensures the United States remains at the forefront of the global economy for generations to come.”
However, Plug Power highlighted that final approval of the funding is contingent upon meeting specific technical, legal, environmental, and financial conditions, including the negotiation of definitive financing documents with the DOE.
Plug Power (NASDAQ: PLUG) Stock Price Action
PLUG stock soared 19.03% to close at $3.44 on Tuesday. Its value increased by 30.30% this week. Trading activity has witnessed 202,248,264 (202.24 million) shares changing hands, well above the average daily volume of 32.97 million.
