LATHAM, N.Y., May 13, 2020 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ: PLUG), a leading provider of hydrogen engines and fueling solutions enabling e-mobility, is pleased to launch the first ever convertible green bond offering in the US. The net proceeds from the convertible green bond offering will fund, among other things, strategic initiatives that underpin the Company’s green hydrogen strategy, as well as the repurchase of previously issued notes whose proceeds were used to fund such strategic purposes. These initiatives include targeted acquisitions in hydrogen generation, liquefaction, and distribution. This capital raise positions us well to execute on our hydrogen vertical integration strategy and we are very pleased to be able to target investors with ESG mandates.
“Plug Power is committed to having over 50% of hydrogen to be green by 2024 and providing customers with a cost-effective supply of low and zero carbon hydrogen,” said Andy Marsh, CEO of Plug Power. “In addition, according to multiple industry sources, levelized cost of green hydrogen is expected to decline by about 50% by 2030 and be at parity with cost of producing hydrogen from traditional steam methane reforming process.”
“Hydrogen is expected to be one of the fastest growing segments of the energy industry, representing as much as 18% of the energy mix in 2050. Plug Power is very pleased to be at the center of the paradigm shift in energy, transportation and power industries.”
Plug Power’s strategic objectives align with industry projections set by McKinsey that hydrogen could provide:
-- 18% of final energy demand: Avoids the consumption of more than 20 million barrels of oil per day compared to today’s energy composition. It would radically decrease the need and energy required to transport fossil fuels across the world and increase self-reliance and energy security. -- 6Gt annual CO2 abatement:In end-use applications, it eliminates local emissions such as sulfur oxides, nitrogen oxides, and particulates, which are linked to smog formation and cause an estimated 3 million premature deaths annually. -- 30MM jobs created: The application of hydrogen at this scale creates a revenue potential of more than $2.5 trillion per year.
“We are very pleased to see significantly increasing investor interest in sustainability bonds,” said Paul Middleton, CFO. “Our intent is that this green bond will provide the opportunity for a broad investor audience to participate in our sustainability efforts to grow the green hydrogen economy.”
Additional investor information on the green bond and Sustainalytics second-party opinion on the Green Bond Framework is available on the Plug Power website at www.ir.plugpower.com/Home/default.aspx. Sustainalytics is a leading investment research and ratings firm dedicated to responsible investment and ESG research.
About Plug Power
Plug Power is building the hydrogen economy as the leading provider of comprehensive hydrogen fuel cell turnkey solutions. The company’s innovative technology powers electric motors with hydrogen fuel cells amid an ongoing paradigm shift in the power, energy, and transportation industries to address climate change and energy security, while meeting sustainability goals.
Plug Power created the first commercially viable market for hydrogen fuel cell (HFC) technology. As a result, the company has deployed over 32,000 fuel cell systems for e-mobility, more than anyone else in the world, and has become the largest buyer of liquid hydrogen, having built and operated a hydrogen highway across North America. Plug Power delivers a significant value proposition to end-customers, including meaningful environmental benefits, efficiency gains, fast fueling, and lower operational costs.
Plug Power’s vertically-integrated GenKey solution ties together all critical elements to power, fuel, and provide service to customers such as Amazon, BMW, The Southern Company, Carrefour, and Walmart. The company is now leveraging its know-how, modular product architecture and foundational customers to rapidly expand into other key markets including zero-emission on-road vehicles, robotics, and data centers.
Plug Power Safe Harbor Statement This communication contains statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, our expectations regarding execution of our hydrogen vertical integration strategy, including entering into definitive acquisition agreements and closing such acquisitions; that such acquisitions if completed, would enhance our capabilities in hydrogen generation, liquefaction and logistics; regarding the amount of hydrogen used by our customers by 2024; regarding the amount of hydrogen that is green by 2024; and regarding our ability to guarantee hydrogen supply for customers, control fuel cost, increase availability to green hydrogen and improve our fuel business margin and cash flow. These forward-looking statements contain projections of our future results of operations or of our financial position or state other forward-looking information. In some cases you can identify these statements by forward-looking words such as "anticipate," "believe," "could," "continue," "estimate," "expect," "intend," "may," "should," "will," "would," "plan," "projected" or the negative of such words or other similar words or phrases, which are predictions of or indicate future events or trends and which do not relate solely to historical matters. We believe that it is important to communicate our future expectations to our investors. However, forward-looking statements involve numerous risks and uncertainties and depend on assumptions, data or methods which may be incorrect or imprecise. There may be events in the future that we are not able to accurately predict or control and that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Investors are cautioned not to unduly rely on forward-looking statements. Actual results may differ materially from those discussed as a result of various factors, including, but not limited to: the risk that we continue to incur losses and might never achieve or maintain profitability; the risk that we will need to raise additional capital to fund our operations and such capital may not be available to us; the risk of dilution to our stockholders and/or stock price should we need to raise additional capital; the risk that our lack of extensive experience in manufacturing and marketing products may impact our ability to manufacture and market products on a profitable and large-scale commercial basis; the risk that unit orders may not ship, be installed and/or converted to revenue, in whole or in part; the risk that a loss of one or more of our major customers, or if one of our major customers delays payment of or is unable to pay its receivables, a material adverse effect could result on our financial condition; the risk that a sale of a significant number of shares of stock could depress the market price of our common stock; the risk that our convertible senior notes, if settled in cash, could have a material effect on our financial results; the risk that our convertible note hedges may affect the value of our convertible senior notes and our common stock; the risk that negative publicity related to our business or stock could result in a negative impact on our stock value and profitability; the risk of potential losses related to any product liability claims or contract disputes; the risk of loss related to an inability to maintain an effective system of internal controls; our ability to attract and maintain key personnel; the risks related to the use of flammable fuels in our products; the risk that pending orders may not convert to purchase orders, in whole or in part; the cost and timing of developing, marketing and selling our products; the risks of delays in or not completing our product development goals; our ability to obtain financing arrangements to support the sale or leasing of our products and services to customers; our ability to achieve the forecasted gross margin on the sale of our products; the cost and availability of fuel and fueling infrastructures for our products; the risks, liabilities, and costs related to environmental, health and safety matters; the risk of elimination of government subsidies and economic incentives for alternative energy products; market acceptance of our products and services, including GenDrive, GenSure and GenKey systems; our ability to establish and maintain relationships with third parties with respect to product development, manufacturing, distribution and servicing, and the supply of key product components; the cost and availability of components and parts for our products; general global economic and political conditions that harm the worldwide economy, disrupt our supply chain, increase material costs or reduce demand for our component products (including changes in the level of gross domestic product in various regions of the world, natural disasters, terrorist act, global conflicts and public health crises such as the coronavirus); the risk that possible new tariffs could have a material adverse effect on our business; our ability to develop commercially viable products; our ability to reduce product and manufacturing costs; our ability to successfully market, distribute and service our products and services internationally; our ability to improve system reliability for our products; competitive factors, such as price competition and competition from other traditional and alternative energy companies; our ability to protect our intellectual property; the risk of dependency on information technology on our operations and the failure of such technology; the cost of complying with current and future federal, state and international governmental regulations; our subjectivity to legal proceedings and legal compliance; the risks associated with past and potential future acquisitions; the volatility of our stock price; the risks associated with volatility in the economy, market trends and other conditions affecting the probability and financial stability of our customers; and the impact of the COVID-19 pandemic on our business, including the impact on our third party suppliers and customers and our ability to continue to attract and retain customers. The risks and uncertainties included here are not exhaustive, and additional factors could adversely affect our business and financial performance, including factors and risks referenced under "Risk Factors" of this prospectus supplement and in the accompanying prospectus or any free writing prospectus provided in connection with this offering and any documents incorporated by reference herein or therein, including our Annual Report on Form 10-K for the year ended December 31, 2019 as well as any amendment or update to our risk factors reflected in subsequent filings with the SEC. We operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from these contained in any forward-looking statements. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. These forward-looking statements speak only as of the date on which the statements were made. Except as may be required by applicable law, we do not undertake or intend to update any forward-looking statements after the date of this communication.
SOURCE: PLUG POWER
Media Contact Ian MartoranaThe Bulleit Group(415) 237-3681 plugpowerPR@bulleitgroup.com