Plug Power Inc. Renews H2 Supply Deal to Boost Growth
Key Ideas
- Plug Power renews and expands hydrogen supply agreement with U.S.-based partner through 2030 to enhance operational flexibility and cost efficiency.
- The agreement focuses on cutting costs, improving cash flow, and supporting growth of hydrogen infrastructure.
- Federal legislation and deepening partnerships emphasize momentum behind domestic hydrogen production as Plug Power plans to increase hydrogen-consuming sites.
Plug Power Inc. announced the renewal and expansion of a multi-year hydrogen supply agreement with a U.S.-based industrial gas partner, aiming to extend collaboration through 2030. The partner will provide liquid hydrogen at reduced prices, focusing on streamlining distribution to cut costs and improve cash flow while supporting Plug's scaling of hydrogen infrastructure. Plug's CEO highlighted the importance of cost efficiency and reliable supply for growth. The company currently operates hydrogen plants in Georgia, Tennessee, and Louisiana, producing 40 tons of liquid hydrogen per day and plans to add more sites in 2025. The announcement aligns with federal legislation promoting clean hydrogen development and showcases the growing momentum in domestic hydrogen production. Plug Power's shares were trading higher, reflecting positive market sentiment towards the company's initiatives.