Plug Power has closed a $1.66bn loan guarantee from the U.S. Department of Energy (DOE) to support the construction of up to six low-carbon liquid hydrogen projects.
The loan guarantee from the DOE’s Loan Programs Office (LPO), initially announced in May, will be welcome news for Plug Power.
It could enhance the company’s access to capital by reducing financing risks, as the government will act as a guarantor for a substantial portion of the debt associated with these projects.
The firm says a planned hydrogen plant in Graham, Texas, will be the first to benefit from the financing.
Expected to be powered by an adjacent wind farm, the plant will use Plug’s electrolyser technology, liquefaction and storage systems, adding to its current US liquid hydrogen production capacity of around 45 tonnes per day.
The closing of the guarantee follows Plug reporting a net loss of approximately $770m for the nine months ending September 30, 2024, up from $443m in the same period of 2023, alongside a widening operating loss of $504m.
“Finalising this loan guarantee with the DOE represents a significant step in the expansion of our domestic manufacturing and hydrogen production capabilities,” said Plug CEO, Andy Marsh.
However, the company’s language on prospective developments has changed since May last year. In its original announcement of the guarantee, it said it would up to “six green hydrogen production facilities.”
Now, the firm says it will help finance “up to six projects to produce and liquify zero- or low-carbon hydrogen” – suggesting it could seek to develop plants not exclusively powered by renewable energy.
The change in tone comes after the finalised rules for the US’s up to $3/kg clean hydrogen tax credit opened potential pathways for developers to use nuclear and fossil-based power with carbon capture.
Read more: US Treasury relaxes 45V hydrogen tax credit rules and opens nuclear pathway
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