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big financing news, an immediate $40M+ cash from sale/leasing deal on their hydrogen liquefaction/storage equipment.
the news keeps flowing, hope this financial "platform" is better for PLUGs cash flow than the PPA contracts they signed with Walmart and never made anything off of.
https://www.ir.plugpower.com/press-releases/news-details/2024/Plug-Power-Launches-an-Equipment-Lease-Financing-Platform---Plug-is-Targeting-150-million-from-a-Combination-of-Debt-Leverage--Customer-Financing-Solutions/default.aspx
Plug Power Launches an Equipment Lease Financing Platform - Plug is Targeting >$150 million from a Combination of Debt Leverage & Customer Financing Solutions
September 19, 2024
Concurrently, Plug Signed Definitive Agreements for an Initial ~$44 Million in Direct Equipment Lease Financing Transactions with GTL Leasing, a Portfolio Company of Antin Infrastructure Partners
SLINGERLANDS, N.Y., Sept. 19, 2024 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, has announced the establishment of an equipment leasing platform and is targeting over $150 million in the near to mid-term. This platform is intended to enable Plug to access capital by leveraging its equipment asset base and to provide equipment financing solutions to Plug’s customers to support equipment sales growth. As a first step in this platform, Plug signed three separate sale and leaseback transactions equivalent to ~$44 million with GTL Leasing (“GTL”), a portfolio company of Antin Infrastructure Partners (“Antin”). The sale and leaseback transactions include various gaseous and cryogenic assets such as trailers and storage tanks for the transport and storage of hydrogen molecules.
These transactions enable Plug to retain access to crucial hydrogen equipment while strengthening its financial position. The funds generated will be reinvested into Plug’s core operations and focused on driving long-term growth and expansion initiatives.
“These initial transactions and platform mark a crucial step in building a strategic partnership with partners like GTL. 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. We are excited about this partnership and are optimistic about the upcoming opportunities and benefits this platform will bring with GTL and other partners,” stated Plug CFO, Paul Middleton.
This platform aims to enhance operational efficiency and resource management for Plug, while offering partners like GTL a valuable investment opportunity to expand their existing portfolios of leased assets. The platform is expected to support Plug’s ongoing commitment to its strategic initiatives and operational capabilities.
For GTL and other potential participants, this partnership with Plug offers strategic benefits, including a stable, long-term revenue stream, material expansion, and diversification of their product portfolio, which further entrenches these lessors in the green hydrogen economy, and provides a pathway for significant expansion and growth over time.
“We are pleased to participate in these three transactions with Plug Power and to support their continued growth in the green hydrogen sector. These initial transactions and the participation in Plug’s equipment leasing platform align with our goal of investing and supporting innovative and sustainable hydrogen technologies, while also providing us with a stable revenue stream. We look forward to advancing our partnership with Plug Power and exploring further lease opportunities,” stated Michael Koonce, CEO of GTL Leasing.
“When we invested in GTL earlier this year, we aimed to inject capital to diversify and strengthen the business’s equipment portfolio, and these transactions deliver exactly that,” stated Nathalie Kosciusko-Morizet and Stephan Feilhauer, Senior Partner and Partner respectively at Antin Infrastructure Partners. “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.” continued Kosciusko-Morizet and Feilhauer.
Goldman Sachs & Co. LLC acted as Plug Power’s financial advisor on the transactions.
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 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.
About GTL Leasing
GTL Leasing was established in 2013 and has grown exponentially over the last ten years to become the leading lessor of high-pressure gaseous hydrogen transport and storage equipment. Though hydrogen transport represents the majority of GTL’s fleet, GTL also leases trailers that transport other industrial gases along with a diversification into cryogenic hydrogen and hydrogen compressor/dispenser equipment. GTL provides customers with short- and long-term operating leases which typically include maintenance services provided by its team of highly skilled in-house technicians. GTL has facilities in Catoosa, Oklahoma and Livermore, California. For more information, visit www.gtlleasing.com.
About Antin Infrastructure Partners
Antin Infrastructure Partners is a leading private equity firm focused on infrastructure. With over €31 billion in assets under management across its Flagship, Mid Cap and NextGen investment strategies, Antin targets investments in the energy and environment, digital, transport and social infrastructure sectors. With offices in Paris, London, New York, Singapore, Seoul and Luxembourg, Antin employs approximately 220 professionals dedicated to growing, improving and transforming infrastructure businesses while delivering long-term value to portfolio companies and investors. Majority owned by its partners, Antin is listed on Euronext Paris (Ticker: ANTIN – ISIN: FR0014005AL0).
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 equipment lease financing platform, including whether, when or on what terms Plug may achieve its target of over $150 million from debt leverage and customer financing solutions in the near to mid-term; the timing and release of funds to Plug with respect to its initial $44 million transactions with GTL; Plug’s intention that the platform will enable it to access capital by leveraging its equipment asset base and to provide equipment financing solutions to Plug’s customers to support equipment sales growth; Plug’s belief that these transactions will enable Plug to retain access to crucial hydrogen equipment while strengthening its financial position and the use of funds to drive long-term growth and expansion initiatives; Plug’s belief that these initial transactions and platform will provide for immediate capital with a path to additional capital over the near term; Plug’s aim for the platform to enhance operational efficiency and resource management for Plug and offer partners a valuable investment opportunity; Plug’s expectation that the platform will support its ongoing commitment to strategic initiatives and operational capabilities; Plug’s belief that partnerships with GTL and other potential participants offers strategic benefits, including a stable, long-term revenue stream, material expansion, and diversification of their product portfolio and provides a pathway for significant expansion and growth over time. You are cautioned that such statements should not be read as a guarantee of future performance or results as such statements are subject to risks and uncertainties. Actual performance or results may differ materially from those expressed in these statements as a result of various factors, including, but not limited to, the following: our ability to achieve our business objectives and to continue to meet our obligations, which is dependent upon our ability to maintain a certain level of liquidity and will depend in part on our ability to manage our cash flows, and the risk that we will need to raise additional capital to fund our operations and such capital may not be available to us. 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, including the “Risk Factors” section of Plug’s Annual Report on Form 10-K for the year ended December 31, 2023, the Quarterly Reports on Form 10-Q for the quarter ended March 31, 2024 and June 30, 2024, as well as any subsequent filings. 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 are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. We disclaim any obligation to update forward-looking statements except as may be required by law.
MEDIA CONTACT
Fatimah Nouilati
Allison
plugPR@allisonpr.com
well the windows in an RV are smaller than those in commercial office buildings so they have a chance of getting some electricity out before the laws of physics take over.
would still be a gimmick IMHO unless also used in the non-window space on the RV, may be they would get sufficient but you can already put non-transparent and efficient panels on the main body…
I would second WTM’s request for some more information.
However the conference was about industrial gases which in the USA Is not a Plug market - it is in Europe
Can you be sure there are no PLUG employees in the audience as I certainly would hope there was it wouldn't take too many shares to be sold to cover the costs?
interesting that not may mobile fuel cell manufacturers seem to be there (because it is an industrial gas conference). for example BOSCHE? or Ballard, or even Bloom and FCEL?
I do see NEL and other European suppliers though - may be the added incentive of a jolly trip to Houston ?
Jack have you got your symposium invite yet?
November 13th
"Plug doing real things". not attending conferences and yapping
Interesting that most of the American fuel cell companies are mot attending (well at least presenting or exhibiting). What does that tell you about the US Hydrogen industry and also the conference - is it trying to cover to much and hence just a lot of hot air? Large profitable companies like Bosche are not there either.
I would not expect PLUG to be spending their scare resource on this event but I would expect them to have one or two key staff in the audience sitting along side the likes of Jack Bolander.
Please let us know the reaction when the Fed’s interest rate decision is announced. This is the single most restrictive issue and has been holding PLUG back for at least 18 months may be longer. (It affects both suppliers and customers - 45V is a supplier side issue)
Shhhh. Do not disturb the squeeze.
Acquisition makes EBITDA positive more certain.. price back to summer 2023
Bought back in yesterday
For those of us waiting for a short squeeze based on news, take a quick look at GEVO (Andy M is a director there!)
Inside a week it has regained the share price from June of 2023.
A combination of good results plus an acquisition that immediately adds cash flow and is synergistic to heir core business
Shame the acquisitions Andy made were all small/startups with a need for cash (which is why he got them so cheap).
But the original DOE notice doesn't mention NKLA. Some bot confusing NMA with NKLA. (hey K..L..M) some sequence there.
https://www.energy.gov/lpo/articles/lpo-announces-conditional-commitment-wabash-valley-resources-repurpose-fossil-fuel
Bloomberg - Bloopberg
I thought ECL had already got one datacenter powered by PLUG stationary fuel cell. certainly discussed well over a year ago when the stationary systems were being prototyped.
The configuration between H2 and battery storage will be interesting for sure.
If the economies are the only concern then they should have to account for the pollution generated by other forms of power generation. (Nuclear is an area I thnk is going to address this in the 5+ year timeframe)
As they state the cost of infrastructure (storage and transportation) is critical and they also don't believe the gov't can get the cost down to $!/kg. yet make other assumptions.
All this may be addressed in time - certainly accurate at todays costs, yet there is still plenty of opportunity for hydrogen markets, since there is hardly any green hydrogen being produced that mans a significant opportunity over the next 3 years or so to fund the cost reduction needed to review the economies of larger scale power and account for the pollution and damage caused by climate change.
Generate H2 where it is needed (Steel / fertilizer even Material handling) and for transportation - the volume there could be significant focussing on depots for rucks, buses, trains.
well PLUG has already started claiming them so that may force them to finalize things…..
It is ridiculous how long this is taking but the initial rules were so far off the intended "incentive" that they had to be delayed
they got the FID. it is going ahead with PLUG Electrolyzers.
so why is it bad news?
Red Trail Energy acquisition makes them far more certain to achieve EBITDA positive next year
fits into their business very well
Close interpretation. They are buying 44m shares for $33.5 m cash. The 0.0001 is the face value and not relevant to the transaction itself - all the shares I own are 0.0001.
When they exercise the warrants they will be paying more - they should be specifying in the form what the price ofr the exercised warrants would be and any conditions around exercising them.
but the net effect is significant increase in shares issued significant cash infusion and one new board member.
I would expect to here who this investor is before the September 30th closing date
Milton owes Nikola $168M, that would cover one or two quarters of capital required while production is ramped up
https://www.tradingview.com/news/reuters.com,2024:newsml_L1N3KS1ER:0-convicted-nikola-founder-milton-owes-electric-truck-maker-168-million-judge-rules/
Convicted Nikola founder Milton owes electric truck maker $168 million, judge rules
Sep 10, 202419:38 EDT
A U.S. judge said Trevor Milton, the Nikola
NKLA
founder who was sentenced to four years in prison after being convicted of fraud, must pay the electric truck maker $167.7 million for making false and misleading statements about the company to the public.
In a decision on Monday, U.S. District Judge Diane Humetewa in Phoenix upheld a divided arbitration panel's November 2023 award in Nikola's favor.
Humetewa said the panel acted within its authority in interpreting a separation agreement that Milton entered when he resigned as Nikola chief executive in September 2020.
The panel found Milton liable to pay $121.25 million, or 97%, of Nikola's $125 million fine from settling a U.S. Securities and Exchange Commission civil fraud case, and to cover nearly $46.5 million in legal fees and expenses.
Milton, 42, argued the award was excessive and amounted to "rough justice" because the panel ignored the "relative fault" of other Nikola executives, directors and employees.
But the judge said the panel's analysis was plausible, including its assigning 3% fault to the Phoenix-based company for failing to stop Milton from misleading investors.
Lawyers for Milton did not immediately respond to requests for comment on Tuesday.
Marc Kasowitz, a lawyer for Nikola, said the company was "gratified but not surprised" at the decision, in light of Milton's "pattern of false and misleading public statements. We look forward to collecting the award."
Jurors in Manhattan convicted Milton in October 2022 on two counts of wire fraud and one count of securities fraud, after prosecutors said he lied to investors about Nikola's technology.
Prosecutors said Milton's improper statements included that Nikola built a pickup from the "ground up," developed batteries he knew it was buying elsewhere, and had made progress in creating a "Nikola One" semi-truck he knew did not work.
Milton is free on bail while he appeals his conviction and December 2023 sentence.
The case is Nikola Corp v Milton, U.S. District Court, District of Arizona, No. 23-02635.
what a great post (and history lesson)!
All hydrogen companies want is a fair playing field
The gas industry had huge government funding to get off the ground and still do get tax credits despite their massive profits
The administration has been bowing to the oil and gas lobbyists for 2 years now - increases in production, new licenses and delays to the hydrogen incentives.
Hopefully the grants given recently start to bring the cost of production down when volume increases - electrolyser costs and associated BPOP are the critical items. to address first IMHO. Renewable energy should be getting cheaper and cheaper if they allow the GW of new energy to be plugged into the grid in a much faster way than it is now - other countries are heading towards 100% renewable. and the oil and gas industry don't like that ..
Andy is probably making up the difference
He certainly could and should.
This isn't news, surprised you didn't know this already… believe it was mentioned by one of the stooges (probably Sanjay) at some point.
Looking to see a joint venture set up for at least Texas to get it done but sharing the revenues, a 3 year delay is killing the company. Canceling Muddy Run was the turning point IMHO and no followup location with the power company.
the current administration is drilling more oil than at any time in our history and will continue to do so.
The hydrogen (and other renewable energy sources) initially should be helping to address the growth in the energy demand from data centers and EVs in particular.
I see no slow down in demand for oil based /generated energy but the opportunity is there for significant investment in renewables and hydrogen as the economy grows. Over the next 5 years this may change but in the short term gov't needs to provide subsidy to companies to get this on an even footing.
perhaps they should stop the subsidy of oil for starters at the same time as releasing 45V credits along the lines of the legislation not lobbyists.
It shouldn't be a political issue - we all live in the same climate and it is noticably changing
not sure what positives I saw in the results though. from what I see on newswires it is de to surging backlog….
their backlog measure is a joke!
>$1Bn because they count 20 year generation contracts in the "backlog". they need product/project back log separate form generation "unrealized revenues"
was unable to be on the call so will wait for slides and trasncript but at this rate PLUG should have tripled at its last earnings call….
your thesis on PLUG doing things to buy votes is incredible, The govt is supporting the emerging hydrogen economy just as it did the petroleum on decades ago. Without it climate change will get worse quicker . The trucking business i an ideal target for this given how much diesel it burns.
$10m is a blip on the total investment and I don't see any new votes being won over by this as it probably doesn't generate any new jobs….
yesterday it was the weekend shift in rochester was to buy votes - what 15 votes is important?
Would the Govt have awarded this if they had concerns about PLUGs future?
I am puzzled why it will take 18 months though since most of the technology is already developed may be not yet in this configuration and 24/7 operation.
On related (dispensing) note does anyone know what technology they are delivering to Ford in BlueOval City - is it Liquid storage to gaseous dispensing or just mutiple Gaseous storage locations around the site? Are they delivering electrolysers as well to generate?
so they got 10 times as much revenue from Government grants than they got from actual customers (Who is Ameresco, Inc.?).
a paltry $300k of product revenue - do they have sales team?
Generation revenues under $14M. I thought $15M was a lock in?
Shocked the price isn't falling pre-hours. I guess the analysts are waiting for the call to hear the spin for the future
Fuel Cell energy fuel cells are powered by mains fed natural gas or other gases and operate at very high temperatures.
they do not make anything that is mobile in nature.
Ballard or PLUG could provide a suitably powered and mobile PEM fuel cells as could Bosch (provide them to Nikola) Hyzon etc.
Honda and Toyota make their own as does GM
Why would PLUG be starting/expanding a weekend shift at Rochester?
https://plugpower.wd5.myworkdayjobs.com/Plug_Power_Inc?locations=7befb07fb8fc012d29f997e11801be50
not the action expected of a company reigning in spending to conserve cash. Headcount is the easiest way of saving and spending money
it seems that at least one did catch fire - facebook postings show it.
I hope you are right that they are the old Romeo ones, and that the Hazmat team are ok with them being left in the open like that
Thanks for posting
still a lot of BEV trucks waiting to be upgraded saw about 20 FCEV near the factory probably getting ready to ship
But what are those boxes around the site? he thinks batteries/modules but why lay them out 10 feet apart like that in the sun.
need a regular fly over like Barry used to do
they have done it for the last year…. mentioned all the time on calls
they seem to have reduced their target cash on hand from 12 months to 6-9 months cash though to reduce the last few raises.
I wonder if we will get the August production numbers next week like other auto manufacturers announce?
The have told us they will be raising capital once a quarter until they are cash flow positive form the increased sales and reduced cost of manufacturing - likely to happen with FCEV 2.0
the assumption this will be by selling shares but it could be from other sources (partnerships, tax credit sales, etc).
They don't sell just for the sake of it.
I see this appointment as being a specific individual with the right experience and skills to help on the demand side of the business.
Negotiating national fleet contracts through dealers cannot be easy and without knowing the “industry norms” NKLA is likely being ripped off by players in the pipeline. He should be able to talk their language and know when they are bing truthful or not.
Same may be said for small fleet orders using HVIP vouchers via dealer or direct
if he can generate $10k more revenue per FCEV sold is that sufficient to cover his pay package or does it have to be $20k. I hope he has some sort of incentive based on per vehicle revenues as well as volume
I do think they (DOE) may insist on seeing the results of their first project (Texas) before guaranteeing loans for subsequent projects. The first tranche of money is for money already spent in clearing the site etc. But they have Keiwit lined up with the fixed price detailed project plan from Georgia so that project should go through and is desperately needed.
So is it really a c $600m loan guarantee?
Amazed that the Muddy Run project got canned that would have been up and running for over a year now had they continued with that - very little permitting required hydro power source on site…. Someone was greedy (Andy or Sanjay) saying they couldn't expand it …. but they could have duplicated it at other dams…
Hmm may be it was a one time. link. ,,, Will send you one as a PM
Try this “gifted” article link
https://seekingalpha.com/article/4717065?gt=994a72e26548d7ab
looking at yesterday my Linde was up but only $100 (0.87%), Cummins up but only $139 (1.14%) my PLUG was up $560 (3.37%) (with 33% higher stake)
So why aren't you In PLUG where you can be making significantly more based on your chosen date?
Read my other posts…
PLUG has a place in anyones balanced Hydrogen portfolio. I certainly wouldn't be “all in” though
may as well repost my post from HYZN board:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174978640
this explains why you should be in these stocks or be ready to step in as soon as price recovery is present. Any of them could be snapped up for multiples of their current price especially if major player see the political and financial situation stabilizing.
My original post:
Hey Jack
to be in hydrogen you can have a “balanced” portfolio
I am in Linde and Cummins (and Air products) as the established market players, but they are being challenged by more nimble and more risk tolerant companies where there is more money to be made (and yes lost)
From an investing point of view the “big gains” are in the emerging smaller companies. like NKLA, HYZN, etc for trucks and Ballard Bloom, FCEL and PLUG for more generic Fuel cell and hydrogen generation
Using Crossing the chasm to assess individual companies and Gorilla Game for how to play an emerging market with multiple players you don't pick one you invest in all and the winner will emerge. (classic case is the RDMS market in the 80’s and 90s where Oracle eventually won out)
Currently I’m not in HYZN and not sure they do survive, are the changes to their focus too late? Same could be said for PLUG but I am still in there. My current expectations are Bloom, Ballard and NKLA will be ok but not adding to my existing positions there yet. When the time comes - with a few more quarters of financials I can move profits from Linde and cummins into these as well.
Just where do you think FCEL and Toyota will be doing this 10 fold increase?.
There are probably 6 more ports world wide Toyota may want to repeat the Tri-generation system but is it profitable for them and for FCEL? Do they all have the renewable fuel (biogas in LAs case) near by?
It is great technology but given there hasn't been a rumor of any more systems being ordered by Toyota or anyone else may be the market isn't there. The CO2 business for bottling plants is another very niche opportunity. If they can scale down the required BOP that would probably be more productive than tri-generation for ports. I hope Jason Few has decent product marketing staff who understand crossing the chasm and other proven theories.
Thanks for sharing this and not just the link.
IMHO California is the make or break for NKLA as they have to get the sales in place to get volume up and costs down and all the major fleets have significant presence in the state to support the first 1000+ FCEVs. Getting the govt to continue and extend their support will help the sales case and they only then need to focus on the HYLA infrastructure for one state.
The activity in Canada is being pushed by the trucking association there more than NIkola and if they can contain it to the current geography they get some exposure for what would be their next real target in mid 2025.
As for the other emerging opportunities I hope they arent too distracted by them and ensure they keep margins in mind if asked to set up NY or Georgia based oprtations
I agree but the reason is :