PLUG cpps 4.24
Rueters announcing a corrected update on an older article I can't pull up. Not sure why correct it now?
Others reported it as a possibility not a given anyway.
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CORRECTED-UPDATE 2-Plug Power jumps on prospective govt loan, liquid green hydrogen production start (Jan. 23)
11:50 AM ET, 02/09/2024 - Reuters
(Corrects paragraph 1 of Jan. 23 story to say company "moving toward securing", not "has secured" government funding; corrects headline to add dropped word "prospective")
By Mrinalika Roy and Tanay Dhumal
Jan 23 (Reuters) - Plug Power said on Tuesday it was moving toward securing over $1 billion in government funding and has started producing liquid green hydrogen at its Georgia plant, sending the company's shares up about 20% in morning trade.
The hydrogen fuel cell firm said it has finalized a term sheet negotiation with the U.S. Department of Energy (DoE) for a $1.6 billion loan facility. The application has been submitted to the Credit Review Board for their final considerations and issuance of a conditional commitment, Plug Power added.
The company has been facing liquidity issues amid supply challenges in the liquid hydrogen market in North America, and had raised going concern doubts in November. It also planned a $1 billion equity raise earlier this month.
"This funding, when received, will support the development construction and ownership of up to six hydrogen production facilities, significantly advancing green hydrogen deployment in the United States," CEO Andrew Marsh said during an investor call.
"With our Georgia plant operational, and the Tennessee plant coming online, we expect a significant reduction in costs," he added.
Talking about the Georgia plant, Marsh said while "the construction took slightly longer than expected", the facility will bolster Plug's supply of liquid hydrogen being delivered to its customers for material handling operations, fuel cell electric vehicle fleets, and stationary power applications.
The plant, which the company said is the largest liquid green hydrogen plant in the U.S. market, is designed to produce 15 tons per day (TPD) of liquid electrolytic hydrogen.
"The DoE loan facility seems well baked, but we have to wait until the second half of 2024. Seems they are getting the finance options they need and wiggling out of a very tight spot," said Craig Irwin, an analyst at Roth Capital Partners.
As companies are moving towards their net-zero emission targets, hydrogen, a zero-emission gas at point-of-use, serves as both a fuel and as energy storage, helping them reduce their carbon footprint.
The company said the production is expected to positively impact its bottom line and provide an additional step change in fuel margin expansion. (Reporting by Mrinalika Roy and Tanay Dhumal in Bengaluru; Editing by Shailesh Kuber)
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Back on that same date - January 23 - numerous articles (behind paywalls) all reiterated it similar to this
Hydrogen Company Plug Power Closes In on $1.6 Billion Loan
Energy Department Loan ‘Key’ for Plug Power’s Growth Plans
Plug Power Inc. surged the most in three years after the hydrogen company said it’s getting close to finalizing a $1.6 billion loan from the U.S. Energy Department, and it’s cutting spending to shore up the balance sheet.
Plug gained as much as 31% Jan. 23, the most intraday since January 2021, as the Latham, N.Y.-based company provided its annual business update. It also said an electolyzer production plant in Georgia is now operational, and another one in Tennessee is expected to open soon.
The government financing will be key for Plug’s growth plans. The company was notified Jan. 22 that the agency’s credit review board is evaluating the application. The rate will be no higher than 6.5%, and Plug Chief Financial Officer Paul Middleton said he expects it to be finalized by the third quarter. The company plans to use the money to support as many as six hydrogen production facilities.
“That lower-cost capital is incredibly helpful,” Middleton said during the update call.
While that will help the company’s long-term plans, it’s still facing a short-term cash crunch as it burns through capital to build out its hydrogen production capacity. The company surprised investors in November by posting worse-than-expected third-quarter earnings and warning that there was doubt it would be able stay in business. It disclosed Jan. 17 plans to sell as much as $1 billion in stock.
“Addressing the critical issue of cash management and resolving our going concern is now our foremost priority,” Chief Executive Officer Andy Marsh said on the call.
That may be resolved in the next few months, according to Colin Rusch, an analyst with Oppenheimer & Co.
“Plug addressed key concerns, notably on balance sheet resilience, operational cash burn, and reaching critical technology performance benchmarks,” Rusch wrote in a research note. “We believe the company will likely be able to address its going concern notice” in the first quarter.
The Energy Department said it can’t comment on loan applications.
Plug is helping lead the charge to promote hydrogen as a clean fuel. For years it specialized in forklifts and freight-handling equipment that ran on hydrogen fuel cells before it began focusing on supplying the gas as well as machines that split the gas from water.
Plug said Jan. 23 that fourth-quarter revenue will be about $200 million, well below the $378 million analysts are expecting, and the company will likely take a non-cash goodwill impairment charge of as much as $250 million. It also plans to cut cash spending by 70% from 2023, with reduced capital expenditure and lower investment in inventory.
Plug has received numerous offers to provide financing, but “they are not under terms that are interesting to the company,” Middleton said.
"Then there was a woman, a lion of a woman."
AI
