US announces Plug Power $1.66bn loan for hydrogen plant expansion

The loan, which formed part of a $6.6bn financing package, comes just days before Trump’s inauguration.

The Department of Energy (DOE) has announced a $1.66bn loan to Plug Power subsidiary, Plug Power Energy Loan Borrower, LLC, with the aims to help construction of up to six hydrogen plants across several US states.

The finance is set to support the construction of up to six facilities across several states that will produce clean hydrogen, utilising the company’s electrolyser technology.

According to the DOE, the deal supports the Biden-Harris administration’s approach to building a “robust clean energy economy that creates healthier communities, strengthens energy security, and delivers new economic opportunities across the nation”.

The deal comes just days before Trump’s inauguration on January 20. As reported by Bloomberg, the deal was in place as the US energy Department programme “faces new threats” due to the incoming presidential transition.

Alongside the financial package, the DOE are set to update the Pathways to Commercial Liftoff: Clean Hydrogen report, with aims of continued support for clean hydrogen across the region.

The DOE stated that the hydrogen fuel produced from the project is expected to produce an estimated 84% reduction in greenhouse gas emissions compared to conventional hydrogen production.

Through this project, Plug Power can enable a larger energy transition for major US corporations including Amazon, Walmart and Home Depot who use Plug’s hydrogen fuel cells across their operations.

Plug Power submitted its application to the Loan Programs Office (LPO) in November 2020 and the finance was accepted through the Title 17 Clean Energy Financing Program.

Plug Power have taken large strides across the renewable energy sector. As previously reported, Plug Power recently  announced a large hydrogen electrolyser purchase agreement with Allied Green Ammonia (AGA).