U.S. Energy Department Finalizes $1.66 Billion Loan Guarantee to Plug Power for Clean Hydrogen Production

The U.S. Energy Department on Jan. 16 finalized a $1.66 billion loan guarantee to Plug Power to develop up to six clean hydrogen production sites that will use the company’s electrolyzer technology. Hydrogen fuel produced from these sites is expected to power fuel cell-electric vehicles in material handling, transportation, and industrial sectors, cutting greenhouse gas emissions by an estimated 84 percent compared to conventional hydrogen production from natural gas, which emits carbon dioxide.

The initiative is a part of the Title 17 Clean Energy Financing Program, which funds innovative clean energy projects to reduce greenhouse gas emissions. Electrolyzers generate hydrogen and oxygen by splitting water using electricity. The company’s PEM technology enables efficient operation even with variable electricity, allowing it to utilize power from intermittent renewable sources. For sectors such as materials handling, hydrogen fuel cells result in improved operational efficiency, and better productivity due to shorter refueling times and reduced carbon emissions.

The planned sites will use Plug Power’s Proton Exchange Membrane, or PEM, electrolyzer stacks manufactured at the company’s Rochester facility in New York. The electrolyzer stacks can be arranged to form systems with capacities of 1 megawatt (MW), 5 MW, and 10MW.

Plug Power currently operates the largest PEM electrolyzer system in the country at its Georgia site. Major companies such as Amazon, Home Depot, and Walmart use Plug Power’s hydrogen fuel cell solutions in their distribution centers.

Clean hydrogen production is a key part of the U.S energy transition, and the department has made significant investments to bolster domestic clean hydrogen. The department unveiled its Clean Hydrogen Roadmap, a strategic framework to speed up the development of clean hydrogen in the U.S. In November 2024, the department awarded $2.2 billion to two major Midwest hydrogen hubs to advance clean hydrogen supply in the region.