Plug Power Inc (NASDAQ:PLUG) plans to leverage the Inflation Reduction Act's (IRA) Section 45V Credit for the Production of Clean Hydrogen (PTC) in its upcoming quarterly financial reports.

The development positions Plug Power among the first U.S. clean hydrogen producers to utilize this new incentive. The update sent the stock price higher on Friday.

Also Read: Plug Power +64% After Securing $1.66B Loan Guarantee From Biden Administration

The PTC offers up to $3.00 per kilogram for clean hydrogen produced in the U.S., making hydrogen production more cost-competitive with traditional fossil fuels.

This benefit will significantly lower Plug Power's fuel costs and help achieve a break-even fuel margin by year-end. Positive fuel margins are expected in 2025 and beyond.

Plug Power's 15-ton-per-day (TPD) electrolytic hydrogen plant in Georgia, the largest in the U.S., marks a significant milestone in the company's efforts to build a vertically integrated hydrogen ecosystem.

Additionally, Plug operates a 10 TPD plant in Tennessee and plans to open a 15 TPD liquid hydrogen facility in Louisiana by the end of 2024.

Plug Power is also working on future plant developments across the U.S. and collaborating with key strategic suppliers to expand its green hydrogen network.

Earlier this week, Plug Power accomplished a milestone with over 7.5 GW in global Basic Engineering and Design Package (BEDP) contracts.

Plug Power stock lost 74% in the last 12 months. In May, the company reported a first-quarter fiscal 2024 net revenue decline of 42.8% year-over-year to $120.264 million, missing the analyst consensus estimate of $157.58 million, reflecting seasonality in equipment sales.

Price Action: PLUG shares are trading higher by 3.25% to $2.54 premarket at last check Friday.

Also Read: Plug Power Pockets 25 MW Green Hydrogen Electrolyzer Order In Europe: Details Here

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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