Power Socket Inc. (NASDAQ:SOCKET) plans to take advantage of the Section 45V credit of the Inflation Reduction Act (IRA) for clean hydrogen production (PTC) in its next quarterly financial reports.
This development positions Plug Power among the first U.S. clean hydrogen producers to utilize this new incentive. The update sent the stock price soaring on Friday.
Read also : Plug Power +64% after securing $1.66 billion loan guarantee from Biden administration
The PTC offers up to $3.00 per kilogram for clean hydrogen produced in the United States, making hydrogen production more cost-competitive compared to traditional fossil fuels.
This benefit will significantly reduce Plug Power’s fuel costs and help achieve a break-even fuel margin by the end of the year. 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 United States, marks a major 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 development across the United States and collaborating with key strategic suppliers to expand its green hydrogen network.
Earlier this weekPlug Power has reached a significant milestone with over 7.5 GW of global Basic Engineering and Design Package (BEDP) contracts.
Plug Power’s stock has lost 74% over the past 12 months. In May, the company reported a first quarter of fiscal 2024 Net sales decreased 42.8% year-over-year to $120.264 million, below analysts’ consensus estimate of $157.58 million, reflecting seasonality in equipment sales .
Price action: PLUG shares were trading up 3.25% at $2.54 ahead of the market open at last check Friday.
Read also: Ordering the 25 MW Plug Power Pockets green hydrogen electrolyzer in Europe: details here
Disclaimer: This content was partially produced using AI tools and was reviewed and published by Benzinga editors.
Photo via Company.
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