With the U.S. government and other governments around the world investing heavily into renewable energy and hydrogen, Plug Power Inc. (PLUG) has wasted no time in expanding its global hydrogen production and manufacturing footprints. Earlier this week, Plug Power announced a $6 billion dollar investment into 3 green hydrogen and ammonia production plants in Finland, which are planned to produce 850 tons per day (TPD) of green hydrogen. While the planned production plants must go through an FID (Final Investment Decision) in 2025 / 2026, this project has the potential to massively increase Plug Power’s international production footprint over the next few years.
Additionally, earlier this month, Plug Power introduced a new high-powered stationary fuel cell system for charging commercial electric vehicle fleets, opening up large new customer bases. In a press release by the company, they mentioned that this new fuel cell system has already garnered significant interest by delivery van fleets, utility companies with large maintenance vehicle fleets, and rental car companies with battery EVs. This comes as Plug Power announced a record in electrolyzer stack platform manufacturing in Q1 of 2023.
Plug Power Inc. is a company that specializes in the development and manufacturing of hydrogen fuel cell systems for various applications, primarily in the material handling and transportation industries. Plug Power’s fuel cells are primarily used in electric vehicles, such as delivery vans and forklifts, where they replace traditional lead-acid batteries or internal combustion engines. This allows these vehicles to operate for longer periods of time and refuel quicker, increasing productivity. In addition to fuel cell systems, Plug Power Inc. also provides hydrogen infrastructure solutions, such as hydrogen generators, refueling stations, and storage systems.
Plug Power is a leading company in the rapidly growing hydrogen fuel cell industry, set to benefit massively from friendly government tax credits, incentives, and subsidies as the U.S. government spends billions and billions of dollars on the larger renewable energy industry, with sizable contributions to the hydrogen industry as well.
In March, the U.S. Department of Energy announced the availability of $750 million dollars for research and development into hydrogen production to reduce the cost of clean hydrogen. This investment is a part of the Biden Administration’s larger $1.5 billion investment into hydrogen, with $1 billion dollars going towards research and development of electrolysis to reduce the costs of clean hydrogen production. Additionally, $500 million will go towards the research and development of technologies for manufacturing and recycling clean hydrogen systems and materials. All $1.5 billion dollars of funding from the federal government will directly support Plug Power’s research and development initiatives.
The Inflation Reduction Act of 2022 additionally added another layer of friendly tax credits, incentives, and subsidies from the federal government. The bill extended many existing federal tax credits, while also creating new federal tax credits and increasing existing ones. Mostly notably, the Advanced Energy Project Credit sets aside $10 billion dollars for qualifying renewable energy projects. Plug Power reaps these benefits as their hydrogen fuel cell and infrastructure projects fall directly within these qualifications.
With this increased government expenditure for hydrogen technology and infrastructure, Plug Power wasted no time leveraging its position through strategic corporate lobbying efforts. The company spent $480,000 in corporate lobbying last month, lobbying for multiple issues and legislation that directly benefit the company. Specifically, they lobbied for clean energy tax credits (Section 45V, Section 48, Section 48E, among others), hydrogen and fuel cell tax provisions, and preliminary discussions regarding potential legislation for hydrogen and aviation stations. Additionally, the company lobbied for FY2024 Defense and Energy and Water appropriations discussions related to hydrogen and fuel cell funding by the Department of Energy and zero emission vehicle funding from the Department of Defense. You can check out Quiver Quantitative’s Lobbying Dashboard (Quiver Quantitative) to view all of Plug Power’s recent spending on corporate lobbying.
Another interesting fact to note is that Dan Goldman, U.S. House Representative for New York’s 10th district, accumulated a sizable long position in the company on April 10th of this year. You can see Quiver Quantitative’s Congress Trading Dashboard (PLUG – Congress Trading | Quiver Quantitative) to view all congressional trading activity on Plug Power.
Keep an eye on PLUG’s latest stock news, data, and more with Quiver Quantitative.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.