Plug Power Sees Green Light with $1.66 Billion DoE Loan Guarantee

The US Department of Energy has announced its agreement for a loan to the H2 company

The US Department of Energy (DoE) has announced its intentions to make a loan guarantee as high as $1.66 billion to Plug Power, a hydrogen fuel production company based in Latham, New York.

The money is intended to support the construction of new H2 facilities

The funds from the DoE are intended to be used to build up to six new clean hydrogen fuel production facilities in the United States.

Earlier this month, the Department of Energy said that the investment was a component of a conditional commitment to Plug Power.  The loan would be made as a part of the Biden administration’s clean H2 production support strategy as a part of its energy decarbonization program. 

The majority of H2 currently produced is known as grey hydrogen. This means that it is made using natural gas and that the greenhouse gas emissions this method produces are unabated.  Among the Biden administration’s goals are to support the conversion of gray H2 into blue (in which the same natural gas is used, but carbon emission abatement techniques are used, such as carbon capture and storage.

The DoE Favoring Green Hydrogen in this Huge Move

Beyond blue H2, the goal of the investment is heavily focused on green H2 production, which means that it is made using electrolysis powered by renewable energy such as wind and solar.

Plug Power is the focus of this investment as it is already a leader in the development of hydrogen fuel cell systems that can be used as a clean energy alternative to fossil fuels and conventional batteries in electric vehicles.

“Green hydrogen is an essential driver of industrial decarbonization in the United States,” said Andy Marsh, CEO at Plug Power. “Earlier this year, Plug successfully demonstrated our innovation and technical ability by launching the first commercial-scale green hydrogen plant in the country in Woodbine, Georgia. This loan guarantee will help us build on that success with additional green hydrogen plants.”

Working with the DoE

Plug Power underwent an extensive and thorough due diligence process with the DoE Loan Programs Office in order to qualify for this loan.  “The loan guarantee will prove instrumental to grow and scale not only Plug’s green hydrogen plant network, but the clean hydrogen industry in the United States,” said Marsh.