Plug Energy has raised about $1 billion in a purchased fairness transaction to fund its plan to construct what might be the primary U.S-wide community of inexperienced hydrogen manufacturing amenities to provide gas cell-powered automobiles, together with its personal, with carbon-free gas.
The Latham, N.Y.-based firm, already the nation’s largest consumer of hydrogen to gas forklifts and different working automobiles utilizing its gas cells, additionally intends to construct a “gigafactory” to broaden manufacturing of gas cells and electrolyzers, spurring a cellphone name final week from U.S. Sen. Chuck Schumer, D-N.Y., to the corporate asking it to website the manufacturing unit in his dwelling state.
Tuesday’s sale of about 43.7 million shares through an underwriting settlement with Morgan Stanley brings Plug Energy’s whole money post-closing steadiness to $1.7 billion. “The capital elevate uniquely positions Plug Energy to execute and speed up on its inexperienced hydrogen technique in addition to different strategic progress initiatives,” the corporate stated in a ready assertion.
“We plan to construct 5 inexperienced hydrogen stations throughout North America, utilizing 100 tons of hydrogen a day. The supply for that will probably be renewables, photo voltaic, wind, hydroelectric energy,” Andy Marsh stated in an October press convention that includes oil corporations, automakers, hydrogen producers and different corporations selling funding in U.S. inexperienced hydrogen infrastructure.
Plug Energy, based in 1997, provides gas cells for forklifts working in warehouses of a number of the nation’s greatest corporations, together with Amazon, Walmart, DHL and Hope Depot. Gas cells have outpaced battery-powered automobiles in these settings, largely as a result of they are often refueled extra rapidly and preserve working longer.
The corporate already makes use of about 20 tons of liquid hydrogen per day to gas about 40,000 forklifts now in use, however expects it might want to add 85 tons per day of manufacturing capability if it’s to achieve its acknowledged objective of 25,000 models a yr and $1.2 billion in annual gross sales by 2024.
Plug Energy’s plans for U.S. inexperienced hydrogen improvement
Whereas Plug Energy’s proton change membrane (PEM) gas cells convert hydrogen to electrical energy and water with none carbon emissions, the identical can’t be stated of the sources of hydrogen it’s utilizing to gas them. The overwhelming majority of hydrogen manufacturing at this time, within the U.S. and all over the world, comes from steam reforming of pure gasoline, which carries a big carbon emissions footprint.
Utilizing electrical energy from renewable sources like photo voltaic and wind farms to electrolyze water into hydrogen affords a carbon-free different. In September, Plug Energy introduced partnerships with Apex Clear Power and Brookfield Renewable Companions to safe renewable vitality to energy its deliberate inexperienced hydrogen manufacturing amenities. It hopes to safe extra clear energy sources to open its first two inexperienced hydrogen amenities by 2022, and have all 5 operational by 2024.
Inexperienced hydrogen prices three to 4 occasions as a lot to supply because the dominant “gray hydrogen” different, though large-scale investments in Europe and Asia might convey it inside price parity by 2030, based on a number of analyses. This may require important price reductions in clear energy provide, price reductions and effectivity enhancements in electrolyzer applied sciences, and economies of scale in manufacturing, transport and consumption to realize.
The U.S. lags behind Europe and Japan in public funding in inexperienced hydrogen, however a number of large-scale efforts have been launched to develop manufacturing capability to be used in electrical energy era. Utilities in Utah, California and the U.S. Gulf Coast have laid plans to transform coal and pure gas-fired energy crops to run on hydrogen, and to develop the electrolysis, storage and transport capability to make it obtainable for broader makes use of.
Hydrogen-fueled automobiles lag behind battery-powered electrical automobiles in widespread adoption and infrastructure to assist them, and it’s unclear if gas cells will probably be cost-competitive with batteries for passenger automobiles over the long term. However hydrogen could also be a extra appropriate selection for long-haul vans or heavy-duty automobiles, gas cell proponents argue.
Plug Energy is searching for to broaden from forklifts to heavy-duty automobiles to serve ports within the U.S. and Europe, in addition to stationary gas cells to energy information facilities and distribution hubs.
Sanjay Shrestha, Plug Energy’s chief technique officer and head of its inexperienced hydrogen era enterprise, stated in Tuesday’s assertion that the corporate has “recognized a number of areas working with strategic companions the place we are able to produce inexperienced hydrogen at parity with gray hydrogen and see additional alternatives to cut back the price of inexperienced hydrogen.”
Plug Energy’s proposed ‘gigafactory,’ anticipated to open in 2021, will broaden its present gas cell manufacturing capability at amenities in Clifton Park and Rochester, N.Y. and Spokane, Wash.. By 2024, Plug Energy intends to be producing about 1.5 gigawatts of gas cells and about 500 megawatts of electrolyzers per yr.
The corporate acknowledged this month that it’s in “persevering with negotiations with two state governments” to choose the gigafactory’s location, with tools already ordered and schedule for opening on monitor.
Sen. Schumer’s workplace famous in a press launch final week that New York is keen to host the power, which is predicted to make use of about 300 individuals and function a middle for gas cell and inexperienced hydrogen analysis and improvement.