The US Department of Energy’s Loan Programs Office (LPO) has announced a $1.66 billion loan guarantee to support the construction of clean hydrogen facilities across several states, supplied by Plug Power Inc.’s innovative electrolyzers. The project aims to advance the Biden-Harris Administration’s whole-of-government approach to building a robust clean energy economy.
The clean hydrogen facilities will utilize Plug’s proprietary electrolyzer technology, which splits water into hydrogen and oxygen using electricity. This process produces emissions-free clean hydrogen, ideal for powering fuel cell-electric vehicles in industries such as material handling and transportation. The project is expected to reduce greenhouse gas emissions by 84% compared to conventional hydrogen production.
The loan guarantee will support the development of Plug’s national customer base, creating an integrated and resilient commercial-scale clean hydrogen fueling network across several regions of the US. Major corporations such as Amazon, Walmart, and Home Depot already utilize Plug’s hydrogen fuel cells in their warehouse and distribution centers.
The project is expected to create 100-200 jobs during construction and at least 50 new full-time jobs per location. Plug has committed to a strong Community Benefits Plan, which includes community outreach programs, workforce development strategies, and apprenticeship initiatives.
This investment supports the Biden-Harris Administration’s Justice40 Initiative, aiming to ensure that 40% of federal investments in climate, clean energy, and other areas benefit disadvantaged communities. The loan guarantee is offered through LPO’s Title 17 Clean Energy Financing Program, which provides financing opportunities for innovative energy projects like Plug’s.
The announcement marks a significant step forward in the US clean hydrogen industry, with Plug Power poised to become a leading commercial-scale manufacturer of electrolyzers in the country. As part of President Biden’s Investing in America agenda, this loan guarantee will support good-paying jobs and create high-quality job opportunities for American workers.
Source: https://www.energy.gov/lpo/articles/doe-announces-166-billion-loan-guarantee-plug-power-produce-and-liquify-clean-hydrogen