These acquisitions are in line with the company’s vertical integration strategy in the hydrogen business laid out in September 2019, with plans to have more than 50% of the hydrogen used to be green by 2024. These activities further enhance Plug Power’s position in the hydrogen industry with capabilities in generation, liquefaction and distribution of hydrogen fuel. These activities establish a clear pathway for Plug Power to transition from low-carbon to zero-carbon hydrogen solutions.
Given these acquisitions, Plug Power is raising its 2024 financial targets to achieve $1.2 billion in revenue (up from $1 billion), $210 million in operating income (up from $170 million) and $250 million in adjusted EBITDA (up from $200 million). These improved financial metrics highlight the value of this vertical integration, underscoring significant margin enhancement potential in the hydrogen fuels business and the expected global growth of the electrolyzer market while meeting customers’ increased focus on sustainability and carbon reduction goals. Plug Power is focused on becoming one of the largest green hydrogen generation companies in the U.S. over the next five years and globally thereafter, and plans to continue to work with existing and new partners to accomplish this goal.
“Plug Power is working to build the modern clean hydrogen economy. Every decision we make is with an eye to the future, not the past,” says Andy Marsh, CEO of Plug Power.
“This closely aligns with the efforts that companies like United Hydrogen and Giner ELX have made to secure broad participation in the hydrogen economy and to achieve the objectives of a clean environment and reduced dependence on foreign oil. We welcome these organizations into the Plug Power family where, as a team, we can accelerate the adoption of low-carbon and zero-carbon hydrogen on a global scale,” he adds.
This planned capacity addition of green hydrogen will serve the significant and rapidly growing demand from current customers as well as position the company to target existing large and growing hydrogen markets. Plug Power projects that its existing customers will use almost 100 tons of hydrogen per day by 2024 and expects over 50% of that to be green hydrogen. This planned green hydrogen generation capacity expansion provides Plug Power with an opportunity to serve its existing customers and potentially serve large industrial customers in the steel, fertilizer and ammonia manufacturing markets.
According to Bloomberg New Energy Finance, the cost of green hydrogen is expected to decline by over 50% by 2030 and will be at parity with traditional ways of producing hydrogen today.
Photo: Plug Power’s The Hydrogen City web page