Plug Power updates green hydrogen production target to 2,000 mt/d by 2030

Plug Power has identified a pathway to ramp up its green hydrogen production levels to 2,000 mt/d across its global network by 2030, the company said June 14, emphasizing that the company is reaching an "inflection point" this year.

The company welcomed analysts and investors to its new 155,000 sq ft gigafactory in Rochester, New York, which has a 2.5-GW nameplate manufacturing capacity for fuel cells and electrolyzers. The June 14 unveiling of the facility will be closely followed by the launch of its cryogenic facility in Georgia, while will be generating 15 mt/d of liquid hydrogen before ramping up to 30 mt/d by the end of the year.

These latest additions are in addition to several others the company is developing across the globe by 2030, including its first kiloton-scale plant.

"This is the year. This is the inflection point," CEO Andy Marsh said. "We'll do between $1.2 to $1.4 billion in revenue, a 70% increase. Gross margins will become positive. We have a broad span of products and activities. This is the time for the hydrogen economy, and this is the time for first movers."

The 2,000 mt/d target extends the company's latest growth projection into the next decade. For several years, the company has aimed to produce 500 mt/d of green hydrogen by 2025 and 1,000 mt/d by 2028.

Plug Power's 2025 target will be met by nine plants across the US, five of which have already been constructed. According to Plug Power's chief strategy oOfficer Sanjay Shrestha, all of that capacity has been claimed, either via offtake agreements with third party buyers or for Plug Power's internal demand for its other business applications.

"Our mission is to never let a customer run out of hydrogen, period," said Shrestha. "We are a customer-obsessed company. We want to make sure that no matter what happens ... we can move hydrogen from the West Coast to the East Coast and keep customers' mission-critical operations going."

Platts, part of S&P Global Commodity Insights, assessed the price of PEM-based green hydrogen in the Northeast at $2.90/kg (including capex) on June 13, while alkaline-based green hydrogen was assessed at $2.18/kg.

Finland additions

Plug Power's new 2030 production target includes capacity additions from European locations as well. By 2028, the company expects to add 500 mt/d of generation capacity via several plants across Europe.

"We're just replicating our know-how from North America [in Europe]," Shrestha said. "We are trying to make sure that this is not just a US phenomenon, it's a global phenomenon. We want to be the leader of this green hydrogen energy business on a global level."

The company highlighted three of those European plants on June 14, all slated for Finland. The first of those plants will be located in Kokkola, Finland and will have a 1 GW capacity to produce green hydrogen and green ammonia in ship into mainland Europe. The second, in Kristinestad, will have a 1 GW capacity. And the third, in Porvoo, will have a 250 MW electrolysis capacity that will supply steel manufacturers, said Marsh.

The company is expected to reach final investment decisions on all three between 2025 and 2026.

"We're not playing this game to come in second place," Marsh said. "We're looking to dominate the hydrogen industry. We want to be the company that people talk about in 2035 like people talk about Amazon and Google today."