Plug Power launches spot pricing program for liquid green hydrogen

U.S. hydrogen solutions company Plug Power has introduced what it claims is the industry’s ‘first-ever’ spot pricing program for liquid green hydrogen.

As disclosed, hydrogen buyers now have the freedom to purchase liquid green hydrogen from Plug’s production plants on demand and without the limitations of long-term take-or-pay agreements.

The flexibility provided by this new spot market, reportedly, allows customers to optimize their hydrogen sources efficiently, reacting swiftly to fluctuating energy demands without being tied down by long-term contracts.

“Looking forward, the ripple effects of this innovative pricing model could redefine supply dynamics and cost structures across the entire green hydrogen ecosystem,” Plug claimed, noting that the company has already entered into spot pricing agreements with several industry players.

Andy Marsh, CEO of Plug Power, stated: “By adapting to market demands in real-time, we are not only enhancing the accessibility and affordability of green hydrogen but also accelerating its adoption across various sectors. We believe this initiative will increase trust and transparency in the industrial hydrogen market. In five years, we anticipate most buyers will tap into the spot market to benefit from the flexibility it offers them.”

Each Thursday, S&P Global Platts will publish a price for the following week based on Plug’s supply and demand at the current time. As explained, the customers must have a spot deal in place, and if they want to purchase hydrogen at the published price, Plug will execute a transaction agreement to accept a customer tanker at one of its plants for a fill.

All Plug’s operating plants in Woodbine, Charleston and St. Gabriel, with a combined liquid hydrogen production capacity of approximately 45 tons per day, participate in the spot pricing program.

“As our hydrogen demand experiences peaks and valleys, our unique spot pricing initiative will allow us to run our plants more efficiently, maintaining economies of scale and scope, and ultimately, maximizing return on capital investment,” Plug’s President Sanjay Shrestha said.

It is worth mentioning that, in January 2025, Plug Power 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. The loan guarantee is expected to help finance the construction of up to six projects to produce and liquify zero- or low-carbon hydrogen at scale throughout the U.S.