Plug Power Inc. (PLUG) is making waves in the hydrogen industry with its new equipment lease financing platform, sending its shares soaring today. This innovative platform is designed to unlock capital from Plug Power’s existing equipment assets, providing a fresh avenue for growth. The company aims to raise over $150 million in the near to mid-term through a strategic mix of debt leverage and customer financing solutions.
In a significant step towards realizing this vision, Plug Power finalized three sale and leaseback deals totaling approximately $44 million with GTL Leasing, a portfolio company of Antin Infrastructure Partners. This partnership marks the initial phase of the platform’s rollout and signifies its potential to unlock significant capital.
Plug Power CFO, Paul Middleton, highlighted the platform’s benefits, stating, “It provides for immediate capital with a path to additional capital over the near term, supports our growth in the green hydrogen sector, and aligns with Plug’s financial and operational objectives.” The agreements encompass hydrogen transport and storage equipment, including trailers and cryogenic storage tanks, allowing Plug Power to retain access to vital equipment while bolstering its financial flexibility.
The capital generated from these deals will be strategically reinvested into core operations, fueling Plug Power’s long-term growth and expansion plans. The platform is designed to optimize operational efficiency and resource management while providing partners like GTL with attractive investment opportunities to expand their leased asset portfolios.
For GTL and other potential participants, this partnership offers long-term revenue streams, portfolio diversification, and deeper engagement in the burgeoning green hydrogen economy, positioning them for sustained growth and expansion. Nathalie Kosciusko-Morizet and Stephan Feilhauer, Senior Partner and Partner respectively at Antin Infrastructure Partners, emphasized the value of these transactions, stating, “These transactions not only provide GTL with a robust portfolio of storage tanks and trailers—both cryogenic and gaseous—but also support some of the largest distribution centers in the U.S.”
In further positive news, Plug Power secured a 25-megawatt (MW) order for its proton exchange membrane (PEM) electrolyzer systems from Castellón Green Hydrogen S.L, a major oil company joint venture. This order underscores the growing demand for Plug Power’s innovative technologies in the green hydrogen space.
Investors seeking exposure to Plug Power can access the stock through various ETFs, including Global X Hydrogen ETF (HYDR) and ETF Series Solutions Defiance Next Gen H2 ETF (HDRO).
The stock market has responded enthusiastically to Plug Power’s strategic moves, with PLUG shares surging 5.95% to $2.225 at the last check Thursday. This positive price action reflects investor confidence in the company’s growth trajectory and its commitment to advancing the hydrogen economy.
