Plug to Receive Federal Clean Hydrogen Production Tax Credit at Georgia Hydrogen Facility

LATHAM, N.Y., June 28, 2024 (GLOBE NEWSWIRE) — Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, which began commercial operation of its electrolytic hydrogen facility in Woodbine, Ga. earlier this year, intends to recognize the benefits of the Inflation Reduction Act’s (IRA) Section 45V Credit for the Production of Clean Hydrogen (PTC) in its forthcoming quarterly financial reports. Plug will be one of the first producers of clean hydrogen in the United States that anticipates utilizing this new incentive enacted by an Act of Congress and signed by President Biden.

The PTC offers a production credit of up to $3.00 per kilogram for clean hydrogen (H2) produced in the U.S., providing a substantial financial incentive for hydrogen production in the U.S, substantially lowering the cost of hydrogen production in the U.S. market. This incentive allows newer, cleaner technologies, such as electrolytic hydrogen, which is produced from water, to be more cost competitive with incumbent fossil fuel technologies.

With the passage of the IRA, the U.S. government has made it clear that clean hydrogen is essential to decarbonizing hard-to-abate industries, combat global climate change, improve U.S. energy security, and build a domestic clean energy manufacturing economy.

In the case of Plug’s fuel operations and sales of fuel to its customers, this benefit will provide a meaningful reduction in the Company’s fuel costs. This benefit is one of the key factors that will enable Plug to drive overall fuel margin to a break even run rate by end of the year and positions Plug for growing positive fuel margins in 2025 and beyond.

“Government support for clean hydrogen is critical to achieving global mid-century decarbonization goals,” stated Plug CEO Andy Marsh. “By leveraging these incentives, we can scale our hydrogen production capabilities and catalyze industry-wide technological advancements. The use of the PTC will drive innovation and investment in clean hydrogen solutions, which are essential for a sustainable future.”

Plug’s 15 ton-per-day (TPD) Georgia facility is the largest electrolytic liquid hydrogen production plant and largest PEM electrolyzer in the U.S. representing a landmark achievement in Plug’s build-out of a vertically integrated hydrogen ecosystem.

In addition to its hydrogen plant in Georgia, Plug is expanding its presence with an already existing 10 TPD plant in Tennessee, and a 15 TPD liquid hydrogen facility in Louisiana scheduled to be operational by the end of 2024. Plug also has a pipeline of future plant developments across the United States and is actively engaged with key strategic suppliers to facilitate the expansion of its green hydrogen network and to achieve cost-effectiveness in green hydrogen production at scale.

Plug intends to fully pursue and utilize the transformative Section 45V framework as it continues to develop, construct, and operate hydrogen generation facilities across the U.S.

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 targeting commercial operation by year-end 2028. 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.

Plug Power Safe Harbor Statement

This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Plug Power Inc. (“Plug”), including but not limited to statements about: Plug’s intention to recognize the benefits of the Inflation Reduction Act’s (IRA) Section 45V Credit for the Production of Clean Hydrogen (PTC) in its forthcoming quarterly financial reports; Plug’s expectation that it will be one of the first producers of clean hydrogen in the United States that anticipates utilizing this new incentive; Plug’s expectations with respect to leveraging these incentives, including its expectation that this benefit will provide a meaningful reduction in its fuel costs, its expectation that this benefit will enable Plug to drive overall fuel margin to a break even run rate by end of the year and positions Plug for growing positive fuel margins in 2025 and beyond, and its expectation that Plug can scale its hydrogen production capabilities and catalyze industry-wide technological advancements; the timing of Plug’s facility in Louisiana becoming operational; and the pipeline of Plug’s future plant developments across the United States. Such statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Plug in general, see Plug’s public filings with the Securities and Exchange Commission (the “SEC”), including the “Risk Factors” section of Plug’s Annual Report on Form 10-K for the year ended December 31, 2023, Plug’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and any subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, and Plug undertakes no obligation to update such statements as a result of new information.

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