US Offers Conditional $1.66 Billion Loan to Plug Power Inc.

The U.S. Department of Energy has announced a conditional loan guarantee of up to $1.66 billion for Plug Power Inc, ( PLUG ) aimed at facilitating the construction of up to six clean hydrogen production plants. The produced hydrogen is intended for use in fuel cell-electric vehicles for material handling, transportation, and heavy industry. The initiative is expected to yield an 84% reduction in greenhouse gas emissions compared to conventional hydrogen production methods, which rely on natural gas and result in significant carbon dioxide emissions unless captured and stored underground.

The current administration sees low-carbon hydrogen as pivotal in addressing climate change, particularly in powering heavy industries such as aluminum, cement, and steel, as well as long-haul transportation. The Department of Energy's Loan Programs Office emphasized that this move is set to unlock the potential of clean hydrogen, thereby contributing to the growth of a robust, American-led industry.

Plug Power's technology, known as electrolyzer stacks, will be utilized in the clean hydrogen plants. These electrolyzer stacks are manufactured at the company’s facility in Rochester, New York. Notably, Plug Power ( PLUG ) is a leading commercial-scale manufacturer of electrolyzers in the United States.

Technical Outlook
Plug Power stock ( PLUG ) was up 40% on Tuesday's market trading. The stock has risen from a falling wedge pattern trading with a moderate Relative Strength Index (RSI) of 67.31 which is sparsely overbought. The stock is trading slightly above the 100-day Moving Average (MA).