The project forms part of the DOE’s regional clean hydrogen hubs and hydrogen programs. Plug Power plans to develop clean hydrogen facilities across the U.S. The company has said its facilities will use advanced electrolyzer stacks, manufactured at its gigafactory in Rochester, New York.
The DOE originally announced a conditional commitment for the loan to Plug Power in May of last year.
Technology Pairs With Renewable Energy
Plug Power has said its proton exchange membrane (PEM) technology allows efficient operation with variable electricity, are are “ideal to pair with renewable energy resources.” Plug’s PEM electrolyzers are modular, scalable hydrogen generators that the company said are “optimized for clean hydrogen production.”
Plug Power wants to a commercial-scale clean hydrogen fueling network to support fuel cells, including for the transporation industry, across various sectors. The company has said its technology can cut greenhouse gas emissions by 84% compared to traditional hydrogen production methods. The loan guarantee announced Thursday will support between 100 and 200 construction jobs and at least 50 full-time positions per location, according to Plug Power.
Plug Power’s hydrogen network has plants in Woodbine, Georgia; Charleston, Tennessee; and St. Gabriel, Louisiana. The plants can produce 45 metric tons of liquid hydrogen daily.
The DOE said the $1.66 billion loan guarantee includes $1.55 billion in principal and $107 million in capitalized interest. The agency in a news release said the funding “will help unlock the full potential of this versatile fuel and support the growth of strong, American-led industry that ensures the United States remains at the forefront of the global economy for generations to come.”
Plug Power submitted its application for funding to the LPO in November 2020.
The DOE also is releasing an update to the Pathways to Commercial Liftoff: Clean Hydrogen report, which was first released in March 2023. The agency said the report “has been updated to reflect the significant progress made by the U.S. clean hydrogen industry since that time.”
Plug Power and the DOE said there are several benefits derived from harnessing hydrogen fuel cells in applications such as material handling equipment, which include “enhanced operational efficiency, reduced environmental impact through zero-emission operations, and increased productivity due to faster refueling times compared to conventional batteries.” The groups noted that businesses including Amazon, Walmart, and Home Depot use Plug’s hydrogen fuel cells across their warehouse and distribution centers.
