DOE Announces $1.66 Billion Loan Guarantee to Connect Electricity to Produce and Liquefy Clean Hydrogen

Today, the U.S. Department of Energy’s (DOE) Loan Programs Office (LPO) announced the closing of a $1.66 billion loan guarantee ($1.55 billion in principal and $107 million in capitalized interest) to Plug Power Inc.’s (Plug) subsidiary, Plug Power Energy Loan Borrower, LLC, to help finance the construction of up to six facilities in several states that will produce electricity clean hydrogen using the company’s own electrolyzer technology. Promoting clean hydrogen is a key part of the Biden-Harris administration’s whole-of-government approach to building a robust clean energy economy that creates healthier communities, strengthens energy security, and delivers new economic opportunities across the country. Today’s announcement will help unlock the full potential of this versatile fuel and support the growth of a strong, U.S.-led industry that will ensure the United States remains at the forefront of the global economy for generations to come. Plug submitted its application to the LPO in November 2020.

In collaboration with DOE’s Clean Hydrogen Regional Hubs and ongoing research, development and demonstration under the DOE Hydrogen Program, this project will help strengthen local economies, create and sustain high-quality jobs, reduce greenhouse gas emissions in sectors critical to achieving U.S. net goals. -zero goal and improve America’s manufacturing and industrial competitiveness.

The Department is also releasing an update to the Pathways to Commercial Liftoff: Clean Hydrogen report. First published in March 2023, the report has been updated to reflect significant progress made by the U.S. clean hydrogen industry since then. Combined with awards from the Regional Clean Hydrogen Hub and other hydrogen manufacturing projects, the updated Liftoff report and Plug Power loan guarantee underscore DOE’s continued support for clean hydrogen.

Plug has a development pipeline that includes building clean hydrogen facilities in several potential locations across the United States to provide its domestic customer base with end-to-end clean hydrogen at scale. This project advances President Biden’s efforts to strengthen the nation’s clean energy supply chains, which are essential to meeting the nation’s ambitious climate goals and improving our national and energy security. Once completed, the project will support an integrated and resilient commercial-scale clean hydrogen fueling network in multiple regions across the United States.

Hydrogen fuel from the project is expected to power fuel cell electric vehicles used in the material handling, transportation and industrial sectors, resulting in an estimated 84% reduction in greenhouse gas emissions compared to to conventional hydrogen production, which derives hydrogen from natural gas. (CH₄) and ultimately produces carbon dioxide (CO₂). The benefits of leveraging hydrogen fuel cells in applications such as material handling equipment include improved operational efficiency, reduced environmental impact through zero-emission operations, and increased productivity through faster refueling times compared to conventional batteries. Large companies such as Amazon, Walmart and Home Depot use Plug’s hydrogen fuel cells in their warehouses and distribution centers.

The clean hydrogen facilities will use Plug electrolyzer stacks that are manufactured at the company’s state-of-the-art gigafactory in Rochester, New York, and will use modular designs to ensure a resilient hydrogen delivery network . Plug is among the leading commercial-scale electrolyzer manufacturers in the United States and currently operates the largest proton exchange membrane (PEM) electrolyzer system in the United States at its Georgia hydrogen plant.

Electrolyzers use electricity to split water into its components, hydrogen and oxygen. Plug’s PEM technology allows it to operate efficiently even with variable electricity, allowing it to harness electricity from intermittent renewables. Electrolyzers that use renewable energy to power their hydrogen production produce clean hydrogen with no emissions. Electrolyzer stacks can be easily configured to produce systems at scales of 1 megawatt (MW), 5 MW and 10 MW. (One MW powers the equivalent of 750 American homes based on their instantaneous demand.)

As part of President Biden’s Investing in America agenda to create good-paying, high-quality job opportunities for American workers, this loan guarantee will support approximately 100 to 200 jobs during the period of full-capacity construction, and at least 50 new jobs at full capacity. -hourly work for each location.

LPO borrowers are required to develop and implement a robust Community Benefits Plan (CBP) for each project. Through its CBP, Plug is committed to working with local communities on project site selection, including seeking input from local economic development corporations. In particular, Plug will launch a community outreach program dedicated to promoting awareness, understanding and use of hydrogen as a clean and sustainable energy source, which aims to engage and empower communities in providing educational resources, interactive activities and collaborative initiatives that highlight the importance of hydrogen. benefits and potential applications of hydrogen technology. Plug utilizes local workforce development strategies and programs that leverage the full range of services offered by the Workforce Innovation and Opportunity Act’s network of one-stop career centers, including the development of apprenticeship programs for operational jobs. This investment supports the Biden-Harris administration’s Justice40 initiative, which sets a goal that 40% of overall benefits from certain federal investments in climate, clean energy and other areas go to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.

Funding is offered through LPO’s Title 17 Clean Energy Financing Program, which includes financing opportunities for innovative energy and supply chain projects like Plug, some projects supported by the State and projects that reinvest in existing energy infrastructure.

Across LPO programs, DOE attracted 182 applications for projects across the country totaling more than $278.9 billion in requested loans and loan guarantees, as of December 2024. For more information on Plug Power, read the conditional commitment blog post and visit the LPO portfolio projects page. .