Plug Power eyes two acquisitions as part of green hydrogen strategy

Plug Power Inc (NASDAQ:PLUG) on Thursday said it is looking to acquire two companies as part of its objective of having over 50% of hydrogen to be green by 2024.

The first target of the US hydrogen and fuel cell technology developer is Pennsylvania-based United Hydrogen Group Inc. The latter produces liquid hydrogen with a low carbon footprint, using by-product hydrogen from chlor alkali plants.

Plug Power owns a convertible bond in United Hydrogen, which could be equal to an equity interest of over 30% on a converted basis, and is in advanced talks to acquire the company. If completed, the purchase is expected to be accretive to earnings immediately and to positively affect Plug Power's hydrogen cost.

At the same time, the company is looking to acquire an electrolyser technology platform company. If the deal is completed, Plug Power will gain access to electrolyser products ranging from 100 kW to over 1 MW. The company also expects to be able to rapidly scale up this product line.

Talks with both companies are still ongoing and there is no guarantee that any deal will go through, but Plug Power expects that both potential purchases can be closed by the end of the second quarter.

The company also said it has increased its term loan facility with Generate Capital by USD 100 million (EUR 92.7m) and extended its maturity to October 2025 from October 2022. The interest rate will be cut to 9.5% from 12% for the entire facility. Plug Power will use the funds for its hydrogen growth strategies and for overall working capital, it said.

(USD 1.0 = EUR 0.927)

Choose your newsletter by Renewables Now. Join for free!