LATHAM, N.Y. - Plug Power Inc. (NASDAQ:PLUG), a provider of hydrogen solutions, announced the resumption of operations at its Tennessee facility, which is expected to contribute approximately ten tons per day (TPD) of liquid hydrogen to the U.S. market. The company has also completed design enhancements aimed at improving the plant's efficiency.
With the Tennessee plant's return to service, Plug Power's liquid hydrogen production capacity in the region, including its Georgia facility, now stands at about 25 TPD. The company's cryogenic trailer fleet will distribute the hydrogen to customers across North America, particularly in the Midwest and East Coast, where demand is concentrated.
Andy Marsh, CEO of Plug Power, highlighted the strategic importance of the Tennessee plant in expanding the company's hydrogen network in North America. He also mentioned the anticipated launch of a joint venture plant in Louisiana, which is expected to contribute an additional 15 TPD of liquid hydrogen capacity by the third quarter of 2024.
Sanjay Shrestha, General Manager, Energy Solutions & Chief Strategy Officer at Plug, indicated that the increased production capacity is projected to lower the average cost of delivered hydrogen, aligning with the company's strategy to improve fuel margins.
Plug Power began producing liquid green hydrogen at its Georgia plant on January 23, 2024, marking the largest such facility in the U.S. and the largest PEM electrolyzer deployment in the country. The company is also developing plants in New York, Texas, Finland, and Belgium, with a goal of establishing a comprehensive green hydrogen ecosystem.
Plug Power has deployed more than 60,000 fuel cell systems and over 180 fueling stations worldwide, becoming the largest buyer of liquid hydrogen.
The information for this article is based on a press release statement from Plug Power Inc.
InvestingPro Insights
As Plug Power Inc. (NASDAQ:PLUG) expands its hydrogen production capabilities with the resumption of its Tennessee facility, it's crucial to understand the company's financial health and market performance to gauge the potential impact of these operational advancements. According to real-time data from InvestingPro, Plug Power has a market capitalization of $2.63 billion, reflecting the market's current valuation of the company. Despite a notable revenue growth of 38.49% in the last twelve months as of Q3 2023, the company operates with a negative gross profit margin of -32.84%, indicating challenges in maintaining profitability at the gross level.
InvestingPro Tips suggest that while analysts anticipate sales growth in the current year, they have also revised their earnings downwards for the upcoming period, which could signal caution for investors. Additionally, the company's stock price has experienced significant fluctuations, with a strong return over the last week, yet it has fallen considerably over the last three, six, and twelve months. This high price volatility is a characteristic that potential investors should be aware of.
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