The Department of Energy has awarded grants totaling $75.7 million to Plug Power, the Latham-based green hydrogen power company currently constructing a production facility in WNY STAMP in the town of Alabama.

The funds are part of a $1 trillion infrastructure bill approved by Congress and President Joe Biden in 2021 and are intended to help with research and development of hydrogen fuel production.

The company has also applied for a $1.6 billion low-interest loan from the DOE. That loan is apparently still under consideration.

Plug Power is betting that hydrogen power will become a big winner in the race to develop clean, renewable energy to sustain the economy and protect the environment in the coming decades. The Latham-based company specializes in "green hydrogen," which is the generation of hydrogen fuel using renewable energy sources such as solar and hydropower. An apparent attraction of WNY STAMP is the ability at that location to tap into hydropower generated by Niagara Falls.

Plug Power aims to provide customers with fuel cells, electrolyzers (splitting water into hydrogen and oxygen), to liquid hydrogen fuel. Plug Power wants to provide distribution, delivery, and services and foresees a future for hydrogen that includes uses such as long-haul trucking.

Plug Power's executives have set ambitious goals -- producing 2,000 tons of hydrogen daily by 2030. At that rate, the company hopes to generate $20 billion in annual revenue at that point with a profit margin of at least 30 percent.  

“The Bipartisan Infrastructure & Jobs Law is helping supercharge Upstate NY’s clean hydrogen sector. With this federal funding, Plug Power and other cutting-edge companies will be able to increase production capacity and spark new innovation to reach the next frontier of clean hydrogen manufacturing and research, all while supporting good-paying clean energy jobs and boosting the fight against climate change,” said, Sen. Charles Schumer. “Clean green hydrogen is one of the most exciting forms of new energy production, and with the major federal investments being made thanks to the Bipartisan Infrastructure Law and Inflation Reduction Act I championed, Upstate NY is poised to lead the way in powering America’s clean energy future.”

The grants are divided into two components.

The company will receive $45.7 million for the following project description:

The goal of this project is to establish and implement automation capabilities within our high-performance PEM stack manufacturing facility in Rochester, New York capable of producing 5,000 1 MW stacks per year.

This project will scale up manufacturing of proton exchange membrane electrolyzer stacks to the multi-GW scale, driving down costs to meet DOE targets. This project will automate membrane electrode assembly fabrication and stack assembly and enable automated inspection with machine learning to accelerate factory acceptance testing.

The project description for the second grant, $30 million:

This project will demonstrate a production pathway to meet a projected 2030 system cost of $80/kW for 100,000 heavy-duty fuel cell systems per year and automate the manufacturing of high-performance, low-defect membrane electrode assemblies in collaboration with the National Renewable Energy Lab.

The project will demonstrate an innovative expansion of their current manufacturing line.

“We are very appreciative and excited about the DOE's clean energy manufacturing initiatives and their profound impact on propelling Plug's industry-leading manufacturing capabilities in fuel cell and electrolyzer MEAs (Membrane Electrode Assemblies) and stacks," said Andy Marsh, CEO of Plug. “Congress enacted these policies to advance hydrogen and fuel cells as vital components of the United States’ climate strategy.  This funding will advance Plug’s fuel cell and electrolyzer manufacturing capabilities, create good paying jobs in New York, and fortify the region’s leadership in the national clean energy transition.”

The company selected WNY STAMP for the construction of a liquid hydrogen plant in February 2021.  The plant will cost more than $290 million to complete. 

Plug Power expects to generate 74 tons per day of liquid hydrogen at its WNY STAMP plant. The company recently opened two new production facilities in Georgia and Tennessee, and the WNY STAMP plant is expected to open in early 2025.

Empire State Development is scheduled to pay up to $2 million in Excelsior Tax Credits in exchange for the creation of 68 jobs at the plant, or about $2,941 per job per year over 10 years. Plug Power is not eligible to receive the tax credits until the jobs are filled. The average starting salary is expected to be approximately $70,000 plus benefits.

As part of the project, Plug Power agreed to invest $55 million in a 450-megawatt electrical substation that will make electricity available to other WNY STAMP tenants.

The company received $118.2 million in sales and property tax exemptions from the Genesee County Economic Development Center. Over the 20-year life of the property tax extensions, Plug Power will make payments in lieu of taxes totaling $2.3 million annually, which will be shared by Genesee County, the Town of Alabama, and the Oakfield-Alabama School District.  Each jurisdiction will also receive an increasing amount of property tax payments each year over the life of the agreement.

In accordance with Security and Exchange Commission Rules, Plug Power disclosed in November that a shortage of cash threatened its ability to remain a "going concern" within the following 12 months.  It suggested it could raise more cash by selling stock and that the company expected to receive a sizable loan from the Department of Energy.

Since then, Plug Power authorized B. Riley Securities to offer additional public shares of the company for sale at market rate with the goal of raising an additional $1 billion in capital.  That agreement was announced in January.  Since then, it has reportedly sold 77,417,069 new shares of stock, raising more than $300 million in cash. The company is continuing to sell new shares with a goal of selling another $700 million in 2024.

On Monday morning, the company announced its fourth quarter 2023 results and that it has removed its "going concern" guidance, stating, "The Company has determined it has sufficient cash on hand coupled with available liquidity to fund its ongoing operations for the foreseeable future."

It also announced record revenue of $891 million for the year, a 27% increase over the prior year.

However, the company continues to lose money and has never turned a profit, which, 25 years into its existence, continues to spook investors. After the Q4 report was released on Monday, the price per share of the company's stock dropped 17 cents and closed at $3.37. It hasn't traded above $5 since November. In early 2021, it was trading for more than $60 a share.

For previous Plug Power coverage, click here.

The company's share price hasn't risen above $5 in four months after executives informed investors that it is facing a cash flow problem, and while it has made progress on improving its cash holdings and has increased production at plants in Tennessee and Georgia, there are stock analysts downgrading Plug Power as an investment opportunity. 

Even so, Plug Power's leadership indicates the company is plowing ahead with plans to build the nation's leading fully integrated hydrogen power supply company -- a revolution in alternative energy production if Plug Power can pull it off.

Uncertain about its ability to raise more investment capital, Plug Power, currently building a hydrogen fuel cell plant in WNY STAMP informed the Security and Exchange Commission in a filing on Friday that it may not have the ability to remain a "going concern" over the next 12 months

Governor Kathy Hochul today announced that the New York Power Authority Board of Trustees approved economic development awards to three firms that will spur more than $508 million in capital investments and create 205 jobs. 

Included among the approved items are low-cost hydropower allocations to Plug Power, a New York-headquartered hydrogen fuel cell manufacturer, for further development of its Genesee County site. 

The NYPA board also approved low-cost hydropower allocations to facilitate an expansion in Niagara Falls for EnerPlate, an electroplating service provider for grid-scale battery systems, and CWT, a hatching eggs producer for the global poultry industry, expanding in Watertown. 

"New York's growing clean energy infrastructure and local economic development go hand in hand," Governor Hochul said. "The items approved today by the NYPA Board of Trustees will create good-paying jobs and spark hundreds of millions of dollars of investment in communities in Western and Northern New York." 

At today's meeting, the NYPA board approved a 50-megawatt (MW) low-cost Niagara hydropower allocation to Plug Power, located at the Genesee County's Science, Technology & Advanced Manufacturing Park (STAMP), to support the firm's $387 million green hydrogen fuel production expansion project that will lead to the creation of 19 additional jobs at the location. The firm is underway with its construction of the $290 million green hydrogen fuel production facility at the site that was announced by Governor Hochul in 2021. The expansion project will increase the capacity of the planned hydrogen production from an estimated 45 tons per day to 74 tons per day. The NYPA board also approved an additional 62 MW of High Load Factor power that NYPA will procure for Plug Power on the energy market.

The Power Authority supports Plug Power at three other locations: Slingerlands, which completed construction in January, Latham, and West Henrietta. In total, NYPA supports Plug Power with 272 MW of low-cost power, supporting more than 2,100 jobs throughout the state.

U.S. Senate Majority Leader Charles E. Schumer today launched a major push to make New York State home to the nation’s first Regional Clean Hydrogen Hub created by the bipartisan Infrastructure Investment & Jobs Law. In a direct letter to U.S. Secretary of Energy Jennifer Granholm, Schumer explained how New York is already a national leader in hydrogen energy production and research, with North America’s largest green hydrogen production facility currently being constructed in Western New York by Plug Power. Schumer said that if selected for federal investment, the Regional Clean Hydrogen Hub would mean thousands more clean energy jobs in New York and major federal investment to cement New York as a leader in the fight against climate change and the future of carbon-free energy production.

“From WNY, Rochester, and the Capital Region to Long Island, New York is leading the nation in hydrogen energy production sparking innovative research that is literally turning water into carbon-free power for electricity, fuel cells, and so much more. That is why I wrote to Energy Secretary Granholm directly to make it clear that New York has all the right ingredients to be the nation’s first-ever Regional Clean Hydrogen Hub and fuel America’s clean energy future,” said Senator Schumer.

Schumer added, “When I led the bipartisan Infrastructure Investment and Jobs Act to passage with an unprecedented $9.5 billion federal investment to expand the hydrogen industry, I had in mind innovative companies like Plug Power in Upstate New York and the potential to create thousands of good-paying clean energy jobs in communities that need it most. New York’s powerhouse workforce, top tier research institutions, and easy access to the renewable energy needed to produce green hydrogen make it uniquely suited to supercharge and lead the federal government’s efforts to secure the nation’s spot as a global leader in clean hydrogen production to power our fight against climate change.”

The bipartisan Infrastructure Investment and Jobs Act provided $8 billion for the Department of Energy to establish four or more Regional Clean Hydrogen Hubs to demonstrate the production, processing, delivery, storage, and end-use of clean hydrogen. Today’s two Requests for Information from DOE’s Office of Energy Efficiency and Renewable Energy points to how important it is that New York quickly coordinate the most compelling proposal for a New York-centered Hydrogen Hub. In addition, the law also makes several new critical investments in hydrogen fuel and clean energy, including:

• $1 Billion for a new Department of Energy Electrolyzer demonstration, commercialization and deployment program to improve the efficiency, increase the durability, and reduce the cost of producing clean hydrogen using electrolyzers.
• $500 million for a new Department of Energy clean hydrogen manufacturing recycling program to foster a clean hydrogen domestic supply chain in the U.S. 

Senator Schumer has been leading the charge to expand clean hydrogen production in New York. In 2020, Senator Schumer made a personal call to Plug Power CEO Andy Marsh pushing for the company to select Upstate New York for the site of its newest factory instead of a site in another state that was in contention.  In December 2020, Schumer announced that Plug Power had heeded his call and selected Monroe County as the site for its new ‘gigafactory,’ a hydrogen fuel cell component R&D and manufacturing plant, bringing $125 million and nearly 380 jobs to the Finger Lakes region. The new ‘gigafactory’ will manufacture hydrogen fuel cell stacks and electrolyzers, which will be used to power a variety of electric vehicles and to generate power from renewable green hydrogen.

Schumer also called on the Department of Energy to support Plug Power’s newly proposed plan to construct a $290 million hydrogen facility at the Western NY STAMP site in Genesee county and personally visited the site in September. Plug Power’s new production facility at STAMP will produce green hydrogen to supply fuel-cell-powered equipment and vehicles such as freight transportation and logistics handling equipment.

Steven Falitico of the Genesee County Chamber of Commerce and Jim Krencik, marketing director for the Genesee County Economic Development Center, provided this photo from the WNY STAMP site that captures the progress of Plug Power's green hydrogen manufacturing project in the Town of Alabama.

Gov. Kathy Hochul touted the hard working Western New York community today as she took part in a groundbreaking ceremony to recognize Plug Power, Inc.’s $290 million investment at the Science & Technology Advanced Manufacturing Park in the Town of Alabama.

“There is a strong work ethic here,” said Hochul, a Buffalo native who spent much time in Genesee and surrounding counties during her days as a U.S. Congresswoman and New York State lieutenant governor. “I come from just a little bit down the road – the granddaughter of a steel worker in a steel plant; my dad worked in the steel plant. In Rochester, he worked at Eastman Kodak and many other jobs.

“People are used to working hard, and employers are recognizing it. This is in our DNA. This is what they will get when they come here and invest here. They’ll get the very best people.”

Hochul was joined by Andy Marsh, chief executive officer of the Latham-based Plug Power, which is set to construct a major green hydrogen fuel production plant and a 450-megawatt electric substation that will provide power to the entire STAMP site.

Officials from the New York Power Authority were also on hand at the Genesee County Economic Development Center-coordinate event, which drew around 100 people.

The NYPA board previously approved a 10,000-kilowatt hydropower provision along with $1.5 million in funding from the Western New York Power Proceeds program, and 143 MW of High-Load Factor power that NYPA will procure for Plug Power on the energy market, drastically lowering electric bills through a reduction in electricity delivery chargers.

Other speakers were State Sen. Edward Rath, Assemblyman Steve Hawley, Genesee County Legislature Chair Rochelle Stein and GCEDC Vice President of Operations Mark Masse.

A CLEAN ENERGY REVOLUTION

Hochul said that the location “is the place where the clean energy revolution is happening.”

She thanked officials at the NYPA for “harnessing the power of the Niagara River … and (being able to) spread that energy across the state – literally, spread the energy across the state.”

“To invest here and to send a message that this project is important enough to have your investment, but also to transfer electricity here and power here, and the conversion into green hydrogen. That’s not happening anywhere else; nowhere else are they being that creative,” she said.

She drew a round of applause when she said, “It’s happening here in Genesee County. And as a result, we’ll have North America’s largest green hydrogen production facility here in the State of New York, but right here in Genesee County.”

The governor said she was “so delighted” to be back home again as this county has special meaning to her.

“I heard Mark (Masse) say I was here a few times,” she said. “I was here a few times a week – to your candy stores and your shops and your restaurants and your downtown, and had the opportunity to talk about the Downtown Revitalization Initiative and so many other transformative projects. So, when I come back home here it gives me the sense of not just (being) excited about what we’ve done in the past but the possibilities in the future. And, ladies and gentlemen, the future is starting today.”

THANKING THE 'EARLY VISIONARIES'

She credited “early visionaries” such as Steve Hyde, former Senator Mary Lou Rath, Assemblyman Steven Hawley, Genesee County Legislature Chair Rochelle Stein and local government officials.

“Thank you for never giving up, for always having the faith. Your persistence and patience has paid off. And that’s what today is all about.”

And she thanked Marsh for seeing the possibilities in Genesee County.

“It’s companies, it’s people and it’s also places, and this place has been crying out for an opportunity like this to show what it was really made out of,” she said. “And the location, I’ve always said this. This region is spectacular because of its proximity to two larger urban areas …”

Masse said interest in STAMP from corporate site selectors from the advanced manufacturing sector -- including semiconductor and clean energy -- has never been stronger.

“There’s a long queue of prospects constantly asking for information, meetings and visiting the site. Our region and our site are very suitable for companies such as Plug Power to succeed and make a lasting impact,” he said.

MASSE PROMOTES SHOVEL-READINESS

Noting that the region has 2.1 million people in a 60-mile radius with 57 colleges and universities – and 4,000 engineering graduates annually, Masse said, “The only thing holding us back now is the increasing of our capacities of existing infrastructure to make this site completely shovel-ready.”

“This would have the full water, sewer, electric at the property line for any company looking to locate here so they can move quickly to construct their facility and be up and running as soon as possible.”

Masse said he was hopeful that New York State will continue to make infrastructure investments to advance the shovel-readiness of mega-sites such as STAMP.

Marsh compared Plug Power’s expansion to George Westinghouse’s pioneering electrical network more than 100 years ago.

“Hydrogen is really important, and green hydrogen is especially important,” he said, adding that projections show that 18 percent of the world’s energy is going to come from hydrogen.

MARSH FORESEES ACCELERATION

“And right here in the field will be the first large-scale green hydrogen network, not only in New York, not only in the U.S., but around the world. Just like George Westinghouse did with electricity years and years ago.”

He called that “a great accelerator for this local economy and Plug Power believes, with its investments here, which we hope to continue to grow – with our investments in Rochester – we will see the same.”

Marsh, mentioning that Plug Power’s green hydrogen will power forklifts at several big companies, said that 25 percent of food during COVID moved through Plug Power products.

“It really made the world realize what Plug Power was doing. We were able to raise $5 billion in the public market, which supplements a lot that goes on with support in New York and other places,” he offered.

CLICK HERE for more about today's developments.

Photo above: Gov. Kathy Hochul speaking at this morning's Plug Power groundbreaking event at WNY STAMP in the Town of Alabama. Photos below: Hochul and Plug Power CEO (center) and other regional and state officials take part in the ceremony; state, regional and local government leaders turned out for the event. Photos by Steve Ognibene.

GENESEE COUNTY, New York — The Tonawanda Seneca Nation reached a settlement (with the Genesee County Economic Development Center) of a lawsuit seeking to stop Plug Power, Inc.’s construction of a facility that would anchor a manufacturing megasite, known as the STAMP (Science & Technology Advanced Manufacturing Park) site. In June, the Nation petitioned the New York State Supreme Court to stop the development of the Plug Power project adjacent to the Nation’s land in Genesee County, but a judge dismissed the case on procedural grounds last week. The STAMP site is adjacent to the Nation and within the Nation’s ancestral territory.

“We’re disappointed that the court didn’t have the opportunity to hear our arguments in this case,” said Kenith Jonathan, Sachem Chief for the Wolf Clan of the Tonawanda Seneca Nation and keeper of the Western Door. “We never got our day in court to explain how the project would diminish the Big Woods and have a negative impact on our Nation and our way of life.”

In its petition to the court, the Nation warned that the development would diminish the Big Woods, a pristine parcel of land that citizens of the Nation forage and hunt on, as they have for centuries. The Big Woods is a source of various traditional medicines important to the Nation’s culture and health. For centuries, the Tonawanda Seneca people have relied on the medicines, passing down that knowledge from generation to generation. Tonawanda Seneca citizens also play traditional games not far from the proposed Plug Power site. Citizens of the Nation voiced concern that the games would be disturbed by the traffic, noise and light pollution from the project.

“Make no mistake; we are opposed to developing a manufacturing megasite adjacent to pristine woods on undeveloped land,” said Chief Jonathan. “While we are disappointed that the construction will go forward, this settlement includes important protections to reduce the impact on our Nation and to protect our way of life. We are hopeful that the agreement can be the framework for a more collaborative relationship with GCEDC and Plug Power moving forward.” 

The settlement negotiated by the Nation will permanently protect from development over 200 acres of land on the STAMP site that is adjacent to the Nation’s territory. Plug Power, Inc. also is prohibited from using pesticides on the protected lands, which will further protect the environment. The Nation also will have cultural resource monitors onsite during earthmoving activities — to help identify and protect any unanticipated cultural resource discoveries.

The nation contended that the liquid hydrogen facility, which is in line to become operational sometime next year at the Western New York Science, Technology and Advanced Manufacturing Park in the Town of Alabama, would infringe upon its “Big Woods” sacred ground that is situated near the western end of STAMP.

As plaintiff in the legal action, the nation also sought to prove the GCEDC did not provide notification prior to the completion of the environmental review process.

Zambito, in his decision released on Sept. 28, ruled that the Seneca Nation failed to add Plug Power, Inc., as a defendant prior to the statute of limitations.

GCEDC reported its environmental impact determination on Feb. 4, giving the nation four months to amend its original suit of June 4 that listed only the GCEDC two top officers and board chair and vice chair as defendants.

The nation eventually added Plug Power, Inc., as a defendant on June 18 – two weeks after the deadline. Furthermore, it did so without “leave of the Court,” Zambito wrote, causing a delay in the amended petition’s filing until July 26.

In his analysis, Zambito wrote that “the proposed amended petition is untimely as it relates to Plug Power, Inc. (deemed a “necessary party”) and the individual GCEDC respondents. The motion to amend is denied accordingly and the amended petition is dismissed.”

He also dismissed the original petition for failure to include Plug Power, Inc., ruling that while the original petition was filed in a timely fashion, “the failure to join such a necessary party can result in the dismissal of the action.”

According to the GCEDC, Plug Power, Inc., plans to build the $232.7 million green energy technology facility at a 29.884-acre site at STAMP, with a proposed initial operation creating 68 new jobs at an average salary of approximately $70,000.

The Latham-based company also will invest $55 million to help build a 345/115KV electric substation in partnership with the New York Power Authority and National Grid. The substation will support future expansion and growth opportunities at STAMP’s 1,250-acre mega-site.

The GCEDC board of directors have approved the following incentives to Plug Power, Inc.:

• Approved Property Tax Payments (Payment in Lieu of Taxes): $2.3 million per year, $46 million over 20 years.
• Sales Tax Exemptions: $1.1 million.
• Estimated Savings: $117.7 million property tax savings over 20 years if assessed at cost of construction ($232.7 million).
• Anticipated assessment is much more likely to be $60-90 million. Payments of $2.3 million per year equate to a zero percent abatement on a $65 million assessment.

Press release:

The Buffalo and Rochester Building Trades Councils joined together this morning in the Town of Alabama to welcome Plug Power’s latest manufacturing plant to the Western New York Science and Technology Advanced Manufacturing Park.

Construction of the $264 million plant in Genesee County is slated to begin Oct. 4. When completed the plant will produce "green hydrogen" for freight transportation and materials handling equipment.

Plug Power will become the first tenant of the STAMP campus, a 1,250-acre business park, in the town.

The Building Trades, representing 20,000 skilled trades people, are looking forward to working with Plug Power on this project as it will employ many craftspeople. When completed, the company also plans to create 62 full-time jobs with an average salary of $75,000, plus benefits.

To date, the Western New York Power Proceeds Allocation Board recommended awarding $1.5 million to support this project. The New York Power Authority has the final say over awarding those funds.

The company is also seeking $2 million in support from Empire State Development, and a package of sales and property tax breaks through the Genesee County Economic Development Center.

Through a process called electrolysis, the Plug Power plant will produce “green hydrogen” for fuel-cells used in transportation and material handling equipment.  This will be clean energy manufactured here in Western New York.

The Building Trades Councils represent 20,000 members in 18 construction unions in the Western NY region including :

Boilermakers, Bricklayers, Carpenters & Piledrivers, Cement Masons, Electricians, Elevator Constructors, Insulators, Ironworkers, Laborers, Millwrights, Operating Engineers, Painters, Plasterers, Plumbers & Pipefitters, Roofers, Sheetmetal Workers, Sprinkler Fitters and Teamsters.

Submitted photo from the WNY STAMP site this morning.