Hydrogen

Plug Power casts ‘substantial doubt’ over its ability to survive amid cash crunch

Plug Power casts ‘substantial doubt’ over its ability to survive amid cash crunch
Plug Power's green hydrogen transportation tanker. (Courtesy: Plug Power)

Hydrogen provider Plug Power saw its stock nearly halved last week after the company warned access to capital has cast “substantial doubt” over its ability to survive over the next year.

In a filing to the U.S. Securities and Exchange Commission on Nov. 9, Plug Power said its existing cash and available for sale and equity securities “will not be sufficient to fund its operations through the next twelve months.”

Plug Power stock (NASDAQ: PLUG) fell 45% on the news.

Plug Power said its management is evaluating all financing opportunities to alleviate the liquidity pressure, including “the sale of securities, incurrence of debt or other financing alternatives.” The company acknowledged, however, that securing new financing is not guaranteed, and the efforts “do not alleviate substantial doubt about the company’s ability to continue as a going concern.”

During the company’s third-quarter earnings call on Nov. 9, Plug Power CEO Andy Marsh described a “difficult quarter, driven primarily by the availability of hydrogen.” He said plant outages have throttled the hydrogen network, leaving some fueling stations without fuel, or with limited supply, for several months.

Plug Power CEO Andy Marsh appeared on a recent episode of the Factor This! podcast to discuss green hydrogen incentives in the Inflation Reduction Act. Watch the full episode on YouTube.

Plug Power is a partner in two of the seven “hydrogen hub” projects — the Appalachian Hydrogen Hub and the Midwest Hydrogen Hub — that were tapped to receive $7 billion from the Department of Energy to jumpstart the industry of the U.S., pending federal approval.