Plug Signs Technical Evaluation Phase Contract for 25 MW of PEM Electrolyzers with Dourogás and CapWatt for 80,000 Ton Per Year Methanol Project

Rhea-AI Summary

Plug Power Inc. (NASDAQ: PLUG) has secured a contract with H2DRIVEN, a project by Dourogás and CapWatt, to provide Technical Evaluation Phase (TEP) support for 25 MW of PEM Electrolyzers during the FEED process for a green methanol project in Portugal. The project aims to produce 80,000 tons of green methanol annually, combining biomass gasification with green hydrogen powered by solar energy. Plug's TEP offering will provide critical insights and technical expertise to support the project's development.

H2DRIVEN's initiative aims to boost Portugal's economy, drive R&D, and reduce emissions by 105 kilotons of CO2 annually by 2027. The project is expected to be operational by the end of 2026, pending successful execution of the TEP and Final Investment Decision.

Positive

• Secured contract for 25 MW of PEM Electrolyzers with H2DRIVEN
• Potential for larger project implementation after successful TEP
• Demonstrates Plug's leadership in PEM electrolyzer technology
• Expands Plug's presence in the European green hydrogen market

Negative

• Project still in early evaluation phase, no guarantee of full implementation
• Final Investment Decision pending, potential for project cancellation

Financial Analyst

This contract with H2DRIVEN marks a significant milestone for Plug Power, showcasing their expanding influence in the green hydrogen sector. While the immediate financial impact may be , the long-term implications are promising. The introduction of the Technical Evaluation Phase (TEP) offering demonstrates Plug's strategic move to capture a larger market share in the growing hydrogen economy.

The potential for 80,000 tons of annual green methanol production indicates a substantial project scale. If Plug secures the full contract post-FEED, it could translate to significant revenue. However, investors should note that this is currently in the evaluation phase and the final investment decision is pending. The 2026 operational target suggests a medium-term revenue potential, aligning with the company's growth trajectory in the renewable energy sector.

While this news is positive, it's important to consider it in the context of Plug's overall financial health and market position. The stock's reaction may be tempered due to the early stage of the project, but it reinforces Plug's position as a key player in the hydrogen technology space.

Environmental Technology Expert

Plug Power's involvement in this green methanol project represents a significant step towards sustainable fuel production. The combination of biomass gasification and green hydrogen for methanol synthesis is an innovative approach to reducing carbon emissions in heavy industry and mobility sectors.

The project's aim to reduce 105 kilotons of CO2 annually by 2027 is substantial and aligns with global decarbonization efforts. Plug's PEM electrolyzer technology, powered by solar energy, ensures the hydrogen production is truly "green," enhancing the project's environmental credentials.

This initiative not only addresses climate change but also promotes energy independence and technological advancement. The focus on R&D and innovation could lead to breakthroughs in hydrogen technology, potentially positioning Plug and Portugal at the forefront of the green hydrogen economy. However, the success of such large-scale projects often depends on overcoming technical challenges and ensuring economic viability in the long term.

Plug will collaborate to provide support during the Front End Engineering Design (FEED) phase

SLINGERLANDS, N.Y., Sept. 12, 2024 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, has secured a contract with H2DRIVEN, a project developed by Dourogás and CapWatt, to provide Technical Evaluation Phase (TEP) support for 25 megawatts (MW) of its Proton Exchange Membrane (PEM) Electrolyzers during the Front End Engineering Design (FEED) process for their green methanol project in Portugal.

Building on the success of its Basic Engineering and Design Package (BEDP) for larger-scale plants, Plug introduced a similar offering to support the development of projects considering multiple 5 MW PEM electrolyzer units. The TEP offering provides customers with technical information and support to advance their projects through the permit and funding application phase and the plant development phase while mitigating risks and making informed Final Investment Decisions (FID). Similar to Plug’s BEDP offering, the TEP offering will focus on delivering critical insights and technical expertise to support customers with their successful project execution.

Following a soft launch of this new engineering study and support offering, Plug is pleased to have secured a first TEP contract with H2DRIVEN. H2DRIVEN expects its project to produce 80,000 tons of green methanol annually by combining synthesis gas from biomass gasification with green hydrogen generated through water electrolysis powered by solar energy. This sustainable methanol will be utilized in heavy industry and mobility applications, contributing to a cleaner energy future.

The FEED process for the project will be led by collaborating closely with Plug to leverage its expertise in PEM technology. During the TEP, Plug will provide essential support and detailed information on its PEM electrolyzer technology, guiding the client through the FEED process.

“This agreement underscores our leadership and expertise in PEM electrolyzer technology,” said Plug CEO Andy Marsh. “With the world’s largest PEM electrolyzer plant and extensive real-world experience, we are well-positioned to provide the technical support needed to advance this project.”

H2DRIVEN aims to bolster the national economy and resilience by driving R&D and innovation, diversifying the production system, and reducing reliance on external markets. The initiative will aim to increase exports, support the EU’s technological sovereignty, and stimulate investment in R&D, leading to technical and scientific advancements. Additionally, H2DRIVEN is targeting development of two new high-tech production systems and a reduction in emissions by 105 kilotons of CO2 (carbon dioxide) annually by 2027.

Once the TEP is successfully executed, the H2DRIVEN project will proceed to the next phase of the project, the Final Investment Decision (FID). H2DRIVEN expects the project to be operational by the end of 2026.

About Plug

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 targeting commercial operation by year-end 2028. 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 expectations about its Technical Evaluation Phase (TEP) offering, including its ability to support customers in mitigating risks, making informed final investment decisions and executing projects; Plug’s expectations about its contract with H2DRIVEN, including its role in providing essential support and detailed information to guide the client through the Front End Engineering Design (FEED) process and expectations that the project will produce 80,000 tons of green methanol annually and will be operational by the end of 2026; and H2DRIVEN’s target to develop two new high-tech production systems and a reduction in emissions by 105 kilotons of CO2 (carbon dioxide) annually by 2027. 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 and June 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
Allison
plugPR@allisonpr.com

FAQ

What is the capacity of the green methanol project Plug Power is involved with in Portugal?

The H2DRIVEN project in Portugal, which Plug Power (PLUG) is supporting, aims to produce 80,000 tons of green methanol annually.

How many megawatts of PEM Electrolyzers is Plug Power (PLUG) providing for the H2DRIVEN project?

Plug Power (PLUG) is providing Technical Evaluation Phase support for 25 megawatts (MW) of its Proton Exchange Membrane (PEM) Electrolyzers for the H2DRIVEN project.

When is the H2DRIVEN project expected to be operational according to Plug Power's (PLUG) press release?

According to Plug Power's (PLUG) press release, the H2DRIVEN project is expected to be operational by the end of 2026, pending successful execution of the Technical Evaluation Phase and Final Investment Decision.

What is the projected CO2 emission reduction for the H2DRIVEN project supported by Plug Power (PLUG)?

The H2DRIVEN project, supported by Plug Power (PLUG), is targeting a reduction in emissions by 105 kilotons of CO2 annually by 2027.