Plug Power Inc. (NASDAQ:PLUG) shares are trading higher today. The hydrogen solutions provider launched an equipment lease financing platform.
The company aims to raise over $150 million in the near to mid-term through a combination of debt leverage and customer financing solutions.
The platform is designed to unlock capital from Plug's equipment assets and offer financing options to drive sales growth.
In its initial step, Plug finalized three sale and leaseback deals totaling around $44 million with GTL Leasing, a portfolio company of Antin Infrastructure Partners.
"It provides for immediate capital with a path to additional capital over the near term, supports our growth in the green hydrogen sector, and aligns with Plug's financial and operational objectives," stated Plug CFO, Paul Middleton.
These agreements cover hydrogen transport and storage equipment, including trailers and cryogenic storage tanks. The transactions allow Plug to retain access to essential hydrogen equipment while enhancing its financial flexibility.
The capital raised will be reinvested into core operations, supporting the company's long-term growth and expansion plans.
The platform is designed to improve Plug's operational efficiency and resource management while providing partners like GTL with an attractive investment opportunity to grow their leased asset portfolios.
For GTL and other participants, this partnership offers long-term revenue potential, portfolio diversification, and deeper involvement in the green hydrogen economy, positioning them for sustained growth and expansion.
Nathalie Kosciusko-Morizet and Stephan Feilhauer, Senior Partner and Partner respectively at Antin Infrastructure Partners stated, "These transactions not only provide GTL with a robust portfolio of storage tanks and trailers—both cryogenic and gaseous—but also support some of the largest distribution centers in the U.S."
On Wednesday, Plug Power secured a 25-megawatt (MW) order for its proton exchange membrane (PEM) electrolyzer systems from a major oil company joint venture, Castellón Green Hydrogen S.L.
Investors can gain access to the stock via Global X Hydrogen ETF (NASDAQ:HYDR) and ETF Series Solutions Defiance Next Gen H2 ETF (NYSE:HDRO).
Also Read: Plug Power Misses Q2 Revenues, Analysts Focus On Electrolyzer Deployments: 'The Bar Was Set Low'
Price Action: PLUG shares are up 5.95% at $2.225 at the last check Thursday.
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