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Plug Power Pursues Electricity-Rights Monetization, Targets Data-Center Backup Market

Management projects more than $275 million in near-term liquidity after a hydrogen supply deal reduced the need for DOE-backed expansion.

Overview

  • Plug disclosed a non-binding letter of intent to monetize electricity rights in New York and another site and to explore backup and auxiliary power for a U.S. data-center developer using its fuel cells.
  • The company expects to lift liquidity by over $275 million through asset sales, release of restricted cash, and lower maintenance costs.
  • Plug paused activities tied to the DOE loan program and will redirect capital toward higher-return opportunities after securing a long-term hydrogen supply agreement with a major industrial gas provider.
  • Third-quarter results were mixed, with a loss of $0.12 per share beating estimates and revenue of $177.05 million slightly below forecasts, and shares that jumped about 10% on the news later traded more muted after the earnings release.
  • Operational updates included installation of a 5 MW electrolyzer for the H2 Hollandia project in the Netherlands, reduced cash burn, a path to gross-margin breakeven by late 2025, and an EBITDA-positive target in the second half of 2026.