Plug Power Announces Strategic Agreements with DOE and FFB to Advance Green Hydrogen Production Facilities

Plug Power Inc. (NASDAQ: PLUG) disclosed on January 16, 2025, that it has entered into significant agreements with the U.S. Department of Energy (DOE) and the Federal Financing Bank (FFB). These agreements aim to support the financing, construction, and ownership of up to six green hydrogen production facilities.

The agreements include a Note Purchase Agreement with the FFB, under which the DOE guarantees the Borrower’s repayment obligations for term loan borrowings and capitalized interest. Additionally, a Loan Guarantee Agreement was entered into with the DOE by the Borrower and Plug Power Limestone, LLC, a subsidiary of Plug Power Inc., to facilitate a multi-draw term loan facility.

The FFB Promissory Note outlines an initial extension of the Guaranteed Loan amounting to a maximum principal of up to $387,598,647.06, intended for the development of a Facility in Young County, Texas. The DOE Loan Facility, with a final maturity date of March 5, 2043, will fund Advances subject to specific conditions, primarily related to project costs and reimbursements.

Interest on the Advances will be calculated at the applicable U.S. Treasury rate plus 2%, with principal and interest payments commencing in June 2028. The Borrower is responsible for reimbursing any payments to the FFB related to the Guaranteed Loan, with obligations secured by collateral from both the Borrower and Project Companies involved.

Furthermore, the Company acts as a guarantor for the Guaranteed Loan and is subject to standard covenants and obligations outlined in the DOE Loan Guarantee Agreement. These include financial testing compliance, restrictions on operations, reporting requirements, and adherence to legal and programmatic regulations.

Regarding forward-looking statements, Plug Power expressed optimism around the loan guarantee’s potential to enhance its manufacturing and hydrogen production capabilities. However, the Company acknowledged inherent risks and uncertainties, emphasizing that actual results may vary due to various factors, including liquidity management, regulatory compliance, market conditions, and operational challenges.

Plug Power encourages stakeholders to review its filings with the Securities and Exchange Commission for a comprehensive understanding of associated risks and ongoing developments. The Company operates in a dynamic landscape and remains committed to updating stakeholders on material changes as required by law.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Plug Power’s 8K filing here.

About Plug Power

Plug Power Inc develops hydrogen and fuel cell product solutions in North America, Europe, Asia, and internationally. The company offers GenDrive, a hydrogen-fueled proton exchange membrane (PEM) fuel cell system that provides power to material handling electric vehicles; GenSure, a stationary fuel cell solution that offers modular PEM fuel cell power to support the backup and grid-support power requirements of the telecommunications, transportation, and utility sectors; ProGen, a fuel cell stack and engine technology used in mobility and stationary fuel cell systems, and as engines in electric delivery vans; GenFuel, a liquid hydrogen fueling delivery, generation, storage, and dispensing system; GenCare, an ongoing Internet of Things-based maintenance and on-site service program for GenDrive fuel cell systems, GenSure fuel cell systems, GenFuel hydrogen storage and dispensing products, and ProGen fuel cell engines; and GenKey, an integrated turn-key solution for transitioning to fuel cell power.