Plug Power, a leading developer of green hydrogen ecosystems, anticipates finalizing contracts for a substantial US Department of Energy (DOE) loan guarantee, valued at up to USD 1.66 billion (EUR 1.53bn), within the next four to seven months, according to Chief Executive Andy Marsh's remarks during Plug's annual shareholder meeting on Wednesday.
The company, which aims to establish an end-to-end green hydrogen infrastructure, recently announced receiving the DOE's long-awaited conditional commitment for the loan guarantee. This crucial funding will empower Plug to construct and operate as many as six green hydrogen production plants.
Addressing inquiries about the timeline for accessing the DOE funds, Marsh's response came amidst reports from Bloomberg indicating Senator John Barrasso's call for a comprehensive investigation by a government watchdog to ensure transparency and accountability within the Loans Programs Office.
“We are targeting finalizing the contracts four to seven months from now, and we feel a month or two after the finalization, the contracts will be able to bring cash into the business based on the guidelines that the DOE has set out for the loan program,” stated Marsh during the meeting.
Moreover, Marsh highlighted the loan as a pivotal component for advancing Plug's project in Texas, stating, “If the loan is completed by September timeframe, we would be targeting having the plant up by the end of the fourth quarter of 2025.” The proposed facility is projected to have the capacity to produce 45 tonnes of green hydrogen per day.
Responding to inquiries during the call regarding the company's profitability outlook for the year, Marsh emphasized Plug's commitment to enhancing cash management and gross margin.
“Our goals are to directionally make significant progress in gross margin and EBITDA, and be in a position that we could in 2025 be able to cross the threshold for both,” he added.
Additionally, Marsh disclosed expectations for a substantial uptick in revenue during the current quarter compared to the first quarter of the year, indicating positive momentum for Plug Power's operations.
