The U.S. Energy Department has announced a conditional loan guarantee of up to $1.66 billion to Plug Power Inc. to support the construction of up to six plants dedicated to producing clean hydrogen.
According to the department's office of loan programs, the hydrogen fuel generated by these plants is intended to power fuel cell-electric vehicles used across various sectors, including material handling, transportation, and heavy industry.
This initiative is projected to yield an 84% reduction in greenhouse gas emissions compared to conventional hydrogen production methods, which typically rely on natural gas and release significant amounts of carbon dioxide unless captured and stored underground.
The Biden administration views low-carbon hydrogen as a crucial tool in combating climate change, particularly in industries such as aluminum, cement, steel, and long-haul transportation. The Department of Energy's Loan Programs Office expressed confidence in the potential of this investment to drive American-led innovation, stating, “Today's announcement will help unlock the full potential of this versatile fuel and support the growth of strong, American-led industry.”
The clean hydrogen plants will utilize Plug Power's proprietary technology, known as electrolyzer stacks, which are manufactured at the company's factory in Rochester, New York. Plug Power is recognized as one of the leading commercial-scale manufacturers of electrolyzers in the United States.
Clean hydrogen can be produced through various methods, including electrolysis powered by renewable energy sources like wind and solar, nuclear power, or natural gas with carbon capture. Currently, the majority of hydrogen production relies on fossil fuels, often with unabated emissions, at a fraction of the cost of clean hydrogen.
