© Plug Power
© Plug Power

Plug Power 2023 losses surpass $725m citing North American supply challenges

Plug Power’s net losses have grown to over $725m for the nine-months to September 30, 2023, as it says it has been negatively impacted by “unprecedented supply challenges in the hydrogen network in North America.”

In its Q3 report, the green hydrogen player said the North American liquid hydrogen market had been “severely constrained” by frequent “force majeure” events, leading to volume constraints, delaying its deployments and service margin improvements.

Reporting a net loss of $283.5m for Q3 2023, Plug Power’s net losses for the nine months ended September 30, 2023, reached $726m, compared to $500.5m for the same period in 2022.

Its Q3 overall gross margin was -69%, compared to -24% in the same period of 2022, despite posting a quarterly revenue of $198.7m up from $188.6m from Q3 2022, saying it has been negatively impacted by equipment sales mix, service contact loss accruals and continued negative fuel margins.

The company said, “The unprecedented number of hydrogen facilities in the market running below nameplate capacity has caused significant hydrogen shortages impacting deployment schedules, fuel prices, system 11 efficiencies, service on hydrogen infrastructures, and timing of varied reliability program rollouts.”

Plug says it is pursuing a number of debt capital and project financing solutions, including Corporate Debt, US Department of Energy (DOE) loans, and project finance and plant equity partners.

“Our MoU with Fortescue contemplates Fortescue having a 40% equity stake in Plug’s Texas hydrogen plant and for Plug to take up to a 25% equity stake in Fortescue’s Phoenix hydrogen plant. We will continue to evaluate partners to lower our capital expenditure needs,” the company said.

In October (2023), Fortescue named Plug as its preferred electrolyser supplier for its 550MW Gibson Island Project in Australia.

Read more: Plug named preferred electrolyser supplier for 550MW Fortescue project

During Q3 2023, Plug was named as a partner of four of the seven selected hydrogen hubs that would progress to funding negations with the DOE.

Read more: Analysis: A whirlwind day for US hydrogen


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