Plug Power projects revenue of over $900M – Hydrogen Economy.
Plug Power has big dreams for 2022.
Chief Executive Officer Andrew Marsh said the company has “never entered a year with such clarity” as it eyes tremendous growth and revenue targets totaling $900 million or more for the year.
The fuel cell maker is adamant about becoming the globe’s largest green hydrogen producer and extended its reach into four markets while amassing roughly 370,000 square feet in manufacturing space around the world for its fuel cell creations.
During a conference call with investors Marsh laid out Plug Power’s lofty goals for 2022.
For the energy sector, it hopes to produce 70 tons of green hydrogen per day. The goal is a stepping-stone to its long-term aim of generating 500 tons of green liquid hydrogen per day by 2025.
Up until recently, Plug Power concentrated its efforts on providing fuel cells to companies such as Amazon, Walmart and Home Depot – its pedestal customers – for machinery such as forklifts.
The company plans to branch out into the transportation industry via cars and trucks. The United States, however, needs stronger infrastructure for this to happen. Plug Power has tried to get ahead of the curve and has begun building its own “green” hydrogen manufacturing plants using electrolyzer technology.
The eco-driven company dedicated land in New York, Georgia, California and Texas to serve as power plants for a nationwide network in green energy assembly. The plants in New York and Georgia are currently under construction. Another plant will be staged in Australia.
Plug Power also acquired Joule, a company specializing in natural gas conversions, for $30 million on Friday. The acquisition, according to Marsh, will help save about 25 percent in electricity costs for operating its hydrogen liquifiers – machines that convert hydrogen gas into a liquid.
He anticipates the move can save Plug Power $200 million over the next four years and forecasted the equipment could foster a large market generating roughly $250 million in annual revenues.
Marsh emphasized the importance of bringing in revenue. The company’s present estimates for over $900 million in revenue would mean an 80 percent growth over 2021’s figures. Plug Power’s dreams, however, don’t stop there. It believes that by 2025 revenue will catapult to $3 billion.
The question remains whether or not Plug Power will be able to cut a profit from such revenue, which it has yet to do. It did not turn a profit in the third quarter of 2021 and instead reported a $106 million loss. Plug Power is expected to release its 2021 final earnings in March.
But Marsh ensured investors that “the work we did in 2021 has positioned us for a strong 2022.”
He pointed to a slate of international partnerships, factory launches and customer growth, as well as the expansion of its management team, several of whom he flaunted are former Tesla employees.
Plug Power’s material handling did a “remarkable job” for the business last year, Marsh noted. This component is three years ahead of schedule since attaining five pedestal customers long before its 2024 deadline.
For the upcoming year, Plug Power intends to rake in $600 million in revenue from its material handling business, with an expectation that the service costs will significantly improve to the point of achieving gross margin neutrality by the year’s end. Thanks for staying up to date at Hydrogen Central.
In other predictions, the company expects its hand in power and mobility markets to muster $50 million in revenue, while securing $300 million in future sales commitments before the year closes.
Several investors raised concerns about ongoing supply chain issues potentially delaying the company’s growth. Marsh said his team is constantly thinking through it and adjusting accordingly.
Marsh:
We haven’t used COVID inflation or supply chain as reasons not to hit our numbers.
“It’s the reason we doubled our sales last year and will hit our goals this year”
Plug Power projects revenue of over $900M; January 19, 2022
