Plug Power’s Louisiana Hydrogen Plant Set for First Quarter Operations with Robust Safety Standards

Rhea-AI Summary

Plug Power Inc. (NASDAQ: PLUG) has confirmed its new 15-ton-per-day (TPD) hydrogen plant in St. Gabriel, Louisiana is on schedule for first quarter operations, now entering final commissioning. The facility is operated by Hidrogenii—a 50/50 joint venture between Plug Power and Olin —utilizing Olin's by-product hydrogen from chlorine production.

The project has achieved over 412,000 safe working hours with zero recordable injuries, demonstrating strong adherence to safety standards. A critical dry-out process is currently underway to remove moisture and impurities from the plant's systems, ensuring high-purity hydrogen production.

Once operational, the Louisiana plant will increase Plug's total production capacity to 39 TPD, supporting growing demand from key partners including Amazon and Walmart. The facility is designed for continuous 24/7 operation, leveraging operational insights from Plug's Woodbine, Georgia facility.

Positive

• Louisiana plant on schedule for Q1 2025 operations
• Facility achieved 412,000+ safe working hours with zero recordable injuries
• Will add 15 TPD of liquid hydrogen, increasing total capacity to 39 TPD
• Supports growing demand from key partners Amazon and Walmart
• 50/50 joint venture with Olin provides access to by-product hydrogen

Negative

• None.

Insights

Hydrogen Energy Analyst

Plug Power's Louisiana hydrogen plant entering final commissioning represents a meaningful operational milestone for a company that has struggled with execution in recent years. The facility's on-schedule progress suggests improving project management capabilities—a critical development given that delays and missed targets have historically undermined investor confidence in PLUG.

The 15 TPD capacity addition will boost Plug's production network by 62.5% to 39 TPD total, strengthening their vertical integration strategy. While this represents substantial company-level growth, context is important—this single facility will produce approximately 5,475 tons annually, a modest fraction of the projected US hydrogen market of over 10 million tons. However, in the green hydrogen segment specifically, this positions Plug as one of the larger domestic producers.

The Hidrogenii joint venture structure with Olin merits investor attention for three reasons:

• It leverages Olin's by-product hydrogen from chlorine production, potentially yielding 30-40% lower production costs compared to electrolysis
• The 50/50 structure reduces Plug's capital requirements during a period of significant cash burn
• It demonstrates Plug's ability to form strategic partnerships to scale more efficiently

The facility's impressive safety record (412,000+ hours without recordable injuries) suggests disciplined operational protocols—crucial for hydrogen production where safety incidents could trigger regulatory scrutiny and operational setbacks.

From a financial perspective, this plant comes online during a critical period for Plug. With approximately $380 million in cash as of last reporting and a quarterly burn rate exceeding $150 million, the company faces liquidity challenges. While this plant should improve gross margins by reducing hydrogen procurement costs, investors should recognize that meaningful profitability impact will take time as utilization ramps.

The mention of Amazon and Walmart as key customers indicates secured demand, though the timing alignment between production capacity and customer offtake agreements remains a key variable for capacity utilization rates. The 24/7 continuous operation model, if achieved, would significantly improve economics compared to Plug's earlier facilities that faced utilization challenges.

This development represents progress in Plug's hydrogen ecosystem strategy, but must be viewed against the company's challenging financial position and need to demonstrate that increased production capacity will translate to improved financial performance.

SLINGERLANDS, N.Y., Feb. 25, 2025 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ: PLUG) has confirmed that its new 15-ton-per-day (TPD) hydrogen plant in St. Gabriel, Louisiana is on schedule as previously announced for operations in the first quarter, now entering the final commissioning phase. Operated by Hidrogenii—a 50/50 joint venture between Plug Power and Olin Corporation—the facility utilizes Olin’s by-product hydrogen from chlorine production. Once fully operational, the plant will play a key role in expanding Plug’s North American hydrogen network.

On-Time Progress with a Strong Safety Focus

The project’s steady progress is complemented by a strong safety record, with the facility achieving over 412,000 safe working hours and zero recordable injuries. This milestone reflects disciplined adherence to rigorous process safety management (PSM) standards and thorough job safety analyses (JSA), ensuring that all high-risk activities—from crane lifts and high-voltage installations to vessel purging and high-pressure pneumatic testing—are executed safely.

“Our team has executed hundreds of high-risk tasks without a single incident,” said Plug CEO Andy Marsh.

Essential Dry-Out Process

A critical dry-out process is underway to remove moisture and impurities from the plant’s piping, vessels, and mechanical systems. This essential step ensures the production of high-purity hydrogen by preventing potential issues such as corrosion, freezing, and inefficiencies in fuel cell performance. The process employs advanced pressure regulation and moisture control techniques, with durations varying from several days to a few weeks depending on the section.

Expanding Capacity and Strengthening the Network

Upon completion, the Louisiana plant will add an additional 15 TPD of liquid hydrogen, increasing Plug’s total production capacity to 39 TPD. This expansion is designed to support growing demand from key partners, including Amazon and Walmart, and further Plug’s strategy of delivering vertically integrated hydrogen solutions. Drawing on operational insights from its Woodbine, Georgia facility, the plant is set for continuous 24/7 operation, enhancing production efficiency and energy independence.

With operations on track for the first quarter as previously announced and a commitment to robust safety measures, the Louisiana hydrogen plant marks an important step in advancing Plug Power’s efforts to build a reliable and sustainable hydrogen network across North America.

About Plug Power

Plug is building an end-to-end green hydrogen ecosystem, from production, storage, and delivery to energy generation, to help its customers meet their business goals and decarbonize the economy. In creating the first commercially viable market for hydrogen fuel cell technology, the Company has deployed more than 69,000 fuel cell systems and over 250 fueling stations, more than anyone else in the world, and is the largest buyer of liquid hydrogen.

With plans to operate a green hydrogen highway across North America and Europe, Plug built a state-of-the-art Gigafactory to produce electrolyzers and fuel cells and is developing multiple green hydrogen production plants for commercial operation. Plug delivers its green hydrogen solutions directly to its customers and through joint venture partners into multiple environments, including material handling, e-mobility, power generation, and industrial applications.

For more information, visit www.plugpower.com.

Plug Power Safe Harbor Statement

This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Plug Power Inc. (“Plug”), including but not limited to statements about: Plug’s ability to complete the final commissions phase or the dry-out process; Plug’s expectation that such facility will bolster its supply of liquid hydrogen being delivered to customers; Plug’s expectation that liquid and gaseous hydrogen production will have a positive impact on Plug’s bottom line and step change in fuel margin expansion; Plug’s continued build-out of its hydrogen network and its ability to allow customers to seamlessly integrate hydrogen into their operations across multiple industries; customer demand for liquid hydrogen; the impact of policies in the U.S. on the demand for liquid hydrogen; the liquid hydrogen production out of Plug’s hydrogen plants bringing down the average cost of delivered hydrogen, positively impacting Plug’s fuel margins; and Plug’s ability to build out a vertically integrated hydrogen ecosystem, including its ability to develop multiple hydrogen production plants targeting commercial operation by year-end 2028. Such statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Plug in general, see Plug’s public filings with the Securities and Exchange Commission (the “SEC”), including the “Risk Factors” section of Plug’s Annual Report on Form 10-K for the year ended December 31, 2023, Plug’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024 and any subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, and Plug undertakes no obligation to update such statements as a result of new information.

Media Contact:
Fatimah Nouilati
Plug Power Inc.
Email: PlugPR@plugpower.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d1ada241-3ec4-4208-a953-504623f6e516

FAQ

When will Plug Power's Louisiana hydrogen plant begin operations?

Plug Power's Louisiana hydrogen plant is on schedule to begin operations in the first quarter of 2025, as previously announced. The facility is currently entering its final commissioning phase.

How much hydrogen will PLUG's Louisiana facility produce?

The St. Gabriel, Louisiana plant will produce 15 tons per day (TPD) of liquid hydrogen, increasing Plug Power's total production capacity to 39 TPD.

Who is Plug Power partnering with for the Louisiana hydrogen plant?

The Louisiana hydrogen plant is operated by Hidrogenii, a 50/50 joint venture between Plug Power (PLUG) and Olin , utilizing Olin's by-product hydrogen from chlorine production.

What safety record has PLUG's Louisiana hydrogen plant achieved?

The facility has achieved over 412,000 safe working hours with zero recordable injuries, demonstrating adherence to rigorous process safety management standards.

Which major customers will benefit from PLUG's expanded hydrogen production?

The expanded hydrogen production capacity will support growing demand from key partners, including Amazon and Walmart, furthering Plug Power's strategy of delivering vertically integrated hydrogen solutions.