Green Hydrogen – Plug Power Boosts Liquidity with $30 Million Federal Investment Tax Credit Transfer
SLINGERLANDS, N.Y., Jan. 27, 2025 (GLOBE NEWSWIRE) — Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, boosted its liquidity by approximately $30 million through the transfer of the Federal Investment Tax Credit (ITC) on January 24, 2025, to a major investor with a strong track record of purchasing comparable credits. The $30 million ITC transfer represents Plug’s first use of the transferability rules under the Inflation Reduction Act (IRA) of 2022 and is among one of the first transfer deals for hydrogen storage and liquefaction assets.
Under the IRA, facilities like Plug’s plant in Woodbine, Georgia that produce, liquify, and store green hydrogen can claim the Section 45V Production Tax Credit (PTC) for green hydrogen produced as well as the ITC on the hydrogen storage and liquefaction assets at the facility. Plug secured the ITC through its investment in liquefaction and storage technologies at its green hydrogen plant in Woodbine, Georgia, which began production in early 2024. This development builds on Plug’s announcement in June 2024 of utilizing the PTC at its Woodbine, Georgia facility — allowing the company to benefit from both the PTC and ITC.
The IRA introduced new tax credits for hydrogen storage and liquefaction assets, as well as provisions for transferring certain previously non-transferable tax credits. These changes enable businesses to better monetize their tax credits and simplify financing processes.
Plug CFO Paul Middleton, explained :
Plug is leveraging tax credit transferability to offset a portion of our investment in our hydrogen plants, which will provide liquidity and reduce future fuel costs,
“This transaction represents a key non-dilutive balance sheet leverage opportunity and sets the stage for future ITC monetization opportunities as we continue build out our green hydrogen ecosystem.”
Plug CEO Andy Marsh, said :
We’re excited to have launched the largest liquid green hydrogen facility in the U.S. and to start leveraging these benefits put in place to advance the industry,
“Tax credits like these propel us towards green hydrogen expansion, energy independence, and significant job growth — shared goals with Plug, the industry, and the U.S. government. We look forward to continuing our collaboration with policymakers to drive innovation and progress in the energy transition.”
This transaction highlights Plug’s strategic use of the new tax credit transferability provisions under the IRA and highlights the IRA’s role in fostering clean energy investments.
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Green Hydrogen – Plug Power Boosts Liquidity with $30 Million Federal Investment Tax Credit Transfer, source
