Plug Power Inks $1 Billion Stock Deal as It Grows Green Hydrogen Market

Plug Power is spending hundreds of millions of dollars to create a market for clean hydrogen used in the company's fuel cells

BETHLEHEM — Plug Power has lined up a $1 billion stock purchase agreement with a private equity firm that the company can use to raise cash to fuel its growth in the green hydrogen market.

Yorkville Advisors of Mountainside, N.J., has agreed to what is known as a standby equity purchase agreement, in which one of its investment funds, YA II PN, Ltd., agreed to purchase up to $1 billion in Plug Power stock if needed within the next two years.

Plug Power is not obligated to sell any of its stock to YA II PN Ltd. In order to secure the rights to sell, however, it paid Yorkville Advisors a $1 million fee.

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If any shares are sold, Plug Power will use the proceeds for working capital and general corporate purposes.

Plug Power makes hydrogen-powered fuel cells used in forklifts and other vehicles. It has also developed stationary fuel cells that can be scaled to power data centers and for use as small power plants.

Plug Power has made fuel cells for decades. The units run on hydrogen and produce no carbon emissions, generating only heat and water vapor.

Hydrogen is used in a variety of manufacturing settings and, until now, has been produced from natural gas, or methane, in a process that releases greenhouse gases into the atmosphere as hydrogen is extracted from methane.

But hydrogen can also be made from water in a process known as electrolysis, in which hydrogen atoms are extracted from water molecules without any carbon having to be released into the atmosphere. That makes it an ideal renewable and sustainable energy source as governments and corporations seek to reduce the release of greenhouse gases, which contribute to climate change.

Plug Power has been building these green hydrogen electrolysis facilities across the U.S. to help create a green hydrogen market. The plan is expensive, though, with each factory costing hundreds of millions of dollars.

Plug Power recently signed a contract with the Department of Energy for a $1.66 billion loan guarantee to build additional green hydrogen facilities.

Shares of Plug Power were down more than 6.24 percent on Monday to fall to $1.51. The company was releasing its year-end and fourth-quarter 2024 financial results.