Plug Power has reported a quarterly net loss of $726.4 million for the first nine months of 2023, marking an expansion of losses driven by what the company described as “unprecedented supply challenges in the hydrogen network in North America.” The US-based hydrogen technology company, currently establishing its own green hydrogen production network, posted a third-quarter net loss of $283.5 million compared to $170.8 million a year ago.
In a letter to investors dated November 9, Plug Power attributed its financial challenges to delays in deployments and service margin improvements caused by multiple force majeure events impacting volume constraints. Despite these setbacks, the company expressed confidence in overcoming the hydrogen supply challenges, particularly with expectations of its Georgia and Tennessee facilities reaching full capacity by year-end.
CEO Andy Marsh highlighted the hydrogen supply issues, citing examples in California where fueling stations faced regular shortages, but he assured investors that the network has stabilized.
However, Plug Power faces a financial hurdle and acknowledged the need for fresh funds to sustain its operations. In a filing with the US Securities and Exchange Commission (SEC), the company indicated that its existing cash and available resources might not be sufficient for the next twelve months given its projected capital expenditure and operating requirements. Plug Power is actively exploring debt capital and project financing solutions, including evaluating various debt financing options and seeking a conditional commitment from the DOE Loan Program Office to finance green hydrogen projects.
CFO Paul Middleton mentioned ongoing discussions with the Department of Energy (DOE) for a potential USD 1.5 billion “platform” to finance projects from construction onwards.
In terms of Q3 financial performance, Plug Power reported a revenue of $199 million, up 5% from the previous year. However, the gross margin was negative 69%, a notable increase from negative 24% in Q3 2022. The company highlighted growth in its electrolyser business sales, a substantial increase in the liquefier and cryogenics business sales pipeline, surpassing $1.1 billion, with revenue tripling compared to the previous year.
