Plug Power Boosts Liquidity with $30 Million Federal Investment Tax Credit Transfer

SLINGERLANDS, N.Y., Jan. 27, 2025 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, boosted its liquidity by approximately $30 million through the transfer of the Federal Investment Tax Credit (ITC) on January 24, 2025, to a major investor with a strong track record of purchasing comparable credits. The $30 million ITC transfer represents Plug’s first use of the transferability rules under the Inflation Reduction Act (IRA) of 2022 and is among one of the first transfer deals for hydrogen storage and liquefaction assets.

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Under the IRA, facilities like Plug’s plant in Woodbine, Georgia that produce, liquefy, and store green hydrogen can claim the Section 45V Production Tax Credit (PTC) for green hydrogen produced, as well as the ITC on the hydrogen storage and liquefaction assets at the facility. Plug secured the ITC through its investment in liquefaction and storage technologies at its green hydrogen plant in Woodbine, Georgia, which began production in early 2024. This development builds on Plug’s announcement in June 2024 of utilizing the PTC at its Woodbine, Georgia facility — allowing the company to benefit from both the PTC and ITC.

The IRA introduced new tax credits for hydrogen storage and liquefaction assets, as well as provisions for transferring certain previously non-transferable tax credits. These changes enable businesses to better monetize their tax credits and simplify financing processes.

“Plug is leveraging tax credit transferability to offset a portion of our investment in our hydrogen plants, which will provide liquidity and reduce future fuel costs,” explained Paul Middleton, CFO of Plug Power. “This transaction represents a key non-dilutive balance sheet leverage opportunity and sets the stage for future ITC monetization opportunities as we continue to build out our green hydrogen ecosystem.”

"We’re excited to have launched the largest liquid green hydrogen facility in the U.S. and to start leveraging these benefits put in place to advance the industry,” said Andy Marsh, CEO of Plug Power. “Tax credits like these propel us towards green hydrogen expansion, energy independence, and significant job growth — shared goals with Plug, the industry, and the U.S. government. We look forward to continuing our collaboration with policymakers to drive innovation and progress in the energy transition."

This transaction highlights Plug's strategic use of the new tax credit transferability provisions under the IRA and underscores the IRA’s role in fostering clean energy investments.

About Plug

Plug is building an end-to-end green hydrogen ecosystem, from production, storage, and delivery to energy generation, to help its customers meet their business goals and decarbonize the economy. In creating the first commercially viable market for hydrogen fuel cell technology, the company has deployed more than 69,000 fuel cell systems and over 250 fueling stations, more than anyone else in the world, and is the largest buyer of liquid hydrogen.

With plans to operate a green hydrogen highway across North America and Europe, Plug built a state-of-the-art Gigafactory to produce electrolyzers and fuel cells and is developing multiple green hydrogen production plants for commercial operation. Plug delivers its green hydrogen solutions directly to its customers and through joint venture partners into multiple environments, including material handling, e-mobility, power generation, and industrial applications.

For more information, visit www.plugpower.com.