Plug Power is targeting $150m mid-term returns from a newly-launched leasing platform for its hydrogen equipment assets.
Having already signed three separate sale and leaseback deals amounting to $44m with GTL leasing for gaseous and cryogenic hydrogen storage and transportation assets, Plug plans to reinvest funds generated through to platform into its core business.
GTL CEO, Michael Koonce, said the initial deals would support the company’s sustainability goals while also providing a “stable revenue stream.”
In a joint statement, Nathalie Kosciusko-Morizet and Stephan Feilhauer, partners at GTL investor Antin Infrastructure Partners praised the move.
“These transactions not only provide GTL with a robust portfolio of storage tanks and trailers – both cryogenic and gaseous – but also support some of the largest distribution centres in the US.”
For Plug, the platform is aimed at enhancing operational efficiency and resource management.
Plug Chief Financial Officer (CFO), Paul Middleton, said the platform will help the struggling firm meet its financial and operational goals.
“It provides for immediate capital with a path to additional capital over the near term, supports growth in the green hydrogen sector and aligns with Plug’s financial and operational objectives,” he said.
In March, the company said it was dedicated to “bolstering” its financial position after it revealed a net loss of $1.36bn in 2023.
Read more: Plug Power is dedicated to ‘bolstering financial position’ in 2024 following $1.36bn net loss
Despite having announced a $74m cost reduction programme, the firm has logged an almost $560m net loss across the first half of 2024.
Nonetheless, Plug says the new leasing platform is expected to support its ongoing commitments to strategic initiatives and operational capabilities.
We made mistakes, but no one has green hydrogen plants like us: Plug Power CEO
© Plug Power
Plug Power CEO, Andy Marsh, has told H2 View the green hydrogen market did not grow as fast as the company hoped, while admitting it could have made better decisions.
Marsh’s comments came the same day that Plug Power revealed it had signed a $1.66bn US Department of Energy loan guarantee to finance the development, construction and ownership of up to six green hydrogen production facilities across the US.
He told H2 View the guarantee was a “big deal” for the firm which has faced significant financial struggles in the past few years, with its 2023 net losses totalling $1.36bn, and the first quarter of 2024 seeing a near $300m loss.
“It’s a big deal,” Marsh said. “We’ve had this vision of how to build out liquid hydrogen plants across the US, and quite honestly, because of financial reasons, we have not been able to do this…
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