Plug Power Inc. (NASDAQ: PLUG) shares rose 1.11% during regular trading hours and surged an additional 4.74% in after-hours trading, reaching $2.87, following the announcement of a significant $1.66 billion loan guarantee from the U.S. Department of Energy (DOE). The loan, disclosed in a January 16, 2025, SEC 8-K filing, will finance the construction of up to six projects aimed at producing and liquefying zero- or low-carbon hydrogen across the United States.
The first project to benefit from this financing is Plug's green hydrogen plant in Graham, Texas, which is expected to create hundreds of high-quality jobs. This plant will be powered by an adjacent wind farm and will utilize Plug's proprietary electrolyzer stacks and liquefaction systems. CEO Andy Marsh highlighted the strategic importance of this development, stating, "Finalizing this loan guarantee with the Department of Energy represents a significant step in the expansion of our domestic manufacturing and hydrogen production capabilities, which create many high-quality jobs throughout the U.S."
The market's positive reaction reflects investor confidence in Plug Power's ability to leverage this funding to enhance its hydrogen production capabilities, reduce carbon emissions, and strengthen the U.S. energy grid. The company's efforts align with national security interests, ensuring the U.S. remains a leader in energy technology.