With a Senator Questioning Plug Power's Government Loan, Is This an Opportunity to Buy the Stock?
How does Plug Power plan to correct its business model?
Plug Power aims to correct its business model by building a network of its own hydrogen plants to produce fuel that it can sell to its customers for a profit. The company has two plants up and running, and another is expected to be complete by the end of the year, which would meet about 65% of where it sees demand headed. The DOE loan, if approved, would help fund up to six green hydrogen production facilities, allowing Plug Power to expand its hydrogen plant network and improve its financial position.
What is the purpose of the DOE loan for Plug Power?
The purpose of the DOE loan for Plug Power is to finance the development and construction of up to six green hydrogen production facilities, supporting the creation of a commercial-scale clean hydrogen fueling network in the United States. This loan will help Plug Power build its green hydrogen plant network and drive the rapid advancement of the hydrogen economy2.
What triggered the surge in Plug Power's shares in May?
In May, Plug Power's shares surged after the company announced that it had received a conditional commitment for a $1.66 billion loan from the U.S. Department of Energy (DOE). This loan would help the company build out its network of hydrogen plants, which is essential for its business model to become profitable.