Plug Power Inc., a global leader in comprehensive hydrogen (H₂) solutions for the green H₂ economy, which began commercial operation of its electrolytic hydrogen facility in Woodbine, Georgia (U.S.) earlier this year, intends to recognize the benefits of the Inflation Reduction Act’s (IRA) Section 45V Credit for the Production of Clean Hydrogen (PTC) in its forthcoming quarterly financial reports.

Plug will be one of the first producers of clean H₂ in the U.S. that anticipates utilizing this new incentive enacted by an Act of Congress and signed by President Biden.

The PTC offers a production credit of up to $3.00 per kg for clean H₂ produced in the U.S., providing a substantial financial incentive for H₂ production in the U.S and substantially lowering the cost of H₂ production in the U.S. market. This incentive allows newer, cleaner technologies, such as electrolytic H₂, which is produced from water, to be more cost competitive with incumbent fossil fuel technologies.

With the passage of the IRA, the U.S. government has made it clear that clean H₂ is essential to decarbonizing hard-to-abate industries, combat global climate change, improve U.S. energy security, and build a domestic clean energy manufacturing economy.

In the case of Plug’s fuel operations and sales of fuel to its customers, this benefit will provide a meaningful reduction in the company’s fuel costs. This benefit is one of the key factors that will enable Plug to drive overall fuel margin to a break even run rate by end of the year and positions Plug for growing positive fuel margins in 2025 and beyond.

"Government support for clean H₂ is critical to achieving global mid-century decarbonization goals,” stated Plug CEO Andy Marsh. “By leveraging these incentives, we can scale our H₂ production capabilities and catalyze industry-wide technological advancements. The use of the PTC will drive innovation and investment in clean H₂ solutions, which are essential for a sustainable future.”

Plug’s 15-tpd Georgia facility is the largest electrolytic liquid H₂ production plant and largest PEM electrolyzer in the U.S., representing a landmark achievement in Plug’s build-out of a vertically integrated H₂ ecosystem.

In addition to its H₂ plant in Georgia, Plug is expanding its presence with an already existing 10-tpd plant in Tennessee, and a 15-tpd liquid H₂ facility in Louisiana scheduled to be operational by the end of 2024. Plug also has a pipeline of future plant developments across the United States and is actively engaged with key strategic suppliers to facilitate the expansion of its green H₂ network and to achieve cost-effectiveness in green H₂ production at scale.

Plug intends to fully pursue and utilize the transformative Section 45V framework as it continues to develop, construct, and operate H₂ generation facilities across the U.S.