Plug Power, Inc. (PLUG) shares are trading higher in the premarket session on Tuesday following the company’s announcement that it has reached nameplate capacity at its hydrogen plants in Georgia and Tennessee. With this increased supply from its hydrogen production network, Plug Power will benefit from a lower cost of hydrogen to achieve profitable growth.
The company’s Louisiana plant, a joint venture with Olin Corporation (OLN), is projected to add 15 TPD of liquid green hydrogen to Plug Power’s North American network by the end of the third quarter. With the addition of the Louisiana plant, Plug Power will have 40 TPD of internal production capacity, meeting the majority of its customer’s demand.
As part of the company’s efforts to restructure its business model, Plug Power implemented price increases across all its offerings, including equipment, service, and fuel.
Under the latest development, the company’s first green hydrogen plant in Georgia is already reaching a nameplate capacity of 15 tons per day (TPD) of liquid hydrogen production, marking a significant milestone for Plug Power’s hydrogen network and the hydrogen economy in the U.S.
This expansion of Plug Power’s hydrogen production capacity positions the company to meet the growing demand for hydrogen in the transportation, power generation, and industrial sectors. Hydrogen is seen as a promising clean energy source, and Plug Power is a leading player in this rapidly developing industry.
In addition to its hydrogen production plants, Plug Power also manufactures hydrogen fuel cell systems for use in electric vehicles and other applications. The company’s shares have been volatile in recent months, but the latest news about its increased production capacity has given investors reason to be optimistic about the company’s future.
