Plug Power Increases Liquidity with $30M Federal Boost
TL/DR –
Plug Power Inc, a leading company in hydrogen solutions, has boosted its liquidity by $30 million through the transfer of the Federal Investment Tax Credit (ITC) to a major investor. This marks Plug’s first use of the transferability rules under the Inflation Reduction Act (IRA) of 2022, making it one of the pioneering deals for hydrogen storage and liquefaction assets. The ITC was secured through Plug’s investment in liquefaction and storage technologies at its green hydrogen plant in Woodbine, Georgia, which began production in early 2024.
Plug Power Boosts Liquidity by $30 million through Federal Investment Tax Credit
Plug Power Inc. (NASDAQ: PLUG), a renowned comprehensive hydrogen solution provider advancing the green hydrogen economy, has increased its liquidity by around $30 million. The increase was realized through the transfer of the Federal Investment Tax Credit (ITC) to a reputable investor, well-versed in purchasing similar credits. The transaction represents Plug’s initial utilization of the transferability regulations under the Inflation Reduction Act (IRA) of 2022, making it one of the first transfer deals for hydrogen storage and liquefaction assets.
Benefiting from IRA provisions
Facilities like Plug’s plant in Woodbine, Georgia that produce, store, and liquify green hydrogen can claim the Section 45V Production Tax Credit (PTC) for green hydrogen and the ITC on hydrogen storage and liquefaction assets due to IRA provisions. The company secured the ITC due to its investment in green hydrogen plant technologies, furthering its June 2024 announcement of using the PTC at the same facility, hence benefiting from both PTC and ITC.
Impact of IRA on clean energy investments
The IRA has introduced new tax credits for hydrogen storage and liquefaction assets and provisions for transferring certain previously non-transferable tax credits. This change allows businesses to monetize their tax credits better and eases finance procedures. The recent transaction underlines Plug’s strategic use of the new tax credit transferability provisions and the role of IRA in promoting clean energy investments.
Plug Power’s Future Plans
Plug Power is constructing an end-to-end green hydrogen ecosystem for its customers to meet their business goals and decarbonize the economy. The Company is the world’s largest buyer of liquid hydrogen, with over 69,000 fuel cell systems deployed and over 250 fueling stations. The company is also developing multiple green hydrogen production plants for commercial operation, from production, storage, and delivery to energy generation. For more information, visit www.plugpower.com.
MEDIA CONTACT:
Fatimah Nouilati
Allison
plugPR@allisonpr.com
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