US DOE backs Plug Power’s hydrogen buildout with $1.66 billion loan guarantee

U.S. hydrogen solutions company Plug Power has closed a $1.66 billion loan guarantee from the U.S. Department of Energy’s (DOE) Loan Programs Office (LPO) to support its hydrogen buildout.

As disclosed, the loan guarantee will help finance the construction of up to six projects to produce and liquify zero- or low-carbon hydrogen at scale throughout the U.S. The hydrogen generated will, reportedly, be used in applications in the material handling, transportation and industrial sectors. Plug’s green hydrogen plant in Graham, Texas, is expected to be the first to benefit from the financing.

Plug’s CEO Andy Marsh commented: “Finalizing this loan guarantee with the Department of Energy represents a significant step in the expansion of our domestic manufacturing and hydrogen production capabilities, which create many high-quality jobs throughout the U.S. In addition to reducing carbon emissions and enhancing the resilience of the U.S. energy grid, we believe the hydrogen economy aligns closely with national security interests, ensuring that the U.S. remains at the forefront of energy technology development and deployment on a global scale.”

Plug Power received a conditional commitment for an up to $1.66 billion loan guarantee from the U.S. DOE at the beginning of 2024. At the time, Plug said the projects under the loan will adhere to the Biden Administration’s Justice 40 Initiative. This process includes gathering input from local labor, workforce and economic development organizations in addition to first responder and non-profit organizations.

To note, Plug is said to be among the leading commercial-scale manufacturers of electrolyzers in the U.S. As informed, the company’s current hydrogen generation network, with plants in Woodbine, Georgia, Charleston, Tennessee, St. Gabriel and Louisiana, has a liquid hydrogen production capacity of approximately 45 tons per day.

The company’s green hydrogen production plants utilize electrolyzer stacks manufactured at its gigafactory in Rochester and liquefaction and hydrogen storage systems engineered at its facility in Houston.