News

Unprecedented Supply Challenges Impact Plug Power's Financial Performance

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4.7

Andrew R. Michaud

• November 09, 2023

Plug Power has faced significant supply challenges in the North American hydrogen network this year, resulting in a negative impact on their financial performance. However, the company remains optimistic, believing that these issues are only temporary. By the end of the year, they expect their facilities in Georgia and Tennessee to operate at full capacity.

Disruptions in the Network

The liquid hydrogen market in North America has experienced frequent force majeure events, leading to volume constraints. This has resulted in an unprecedented number of hydrogen facilities operating below their nameplate capacity, causing significant shortages. As a consequence, deployment schedules, fuel prices, system efficiencies, service on hydrogen infrastructures, and the timing of reliability program rollouts have all been affected. However, there have been recent improvements in the network.

Substantial Impacts of Facilities in the South

Plug Power anticipates that their facilities in Tennessee and Georgia will play a vital role in mitigating network disruptions. These locations are expected to have substantial positive impacts on addressing the hydrogen shortages.

Effects of Network Disruptions

Due to hydrogen disruptions, service costs have been greatly impacted. Upgrades at both new and existing customer sites have been delayed as a result. To manage this situation, Plug Power has maximized the use of their logistics assets and team members to transport hydrogen across the United States, ensuring the smooth functioning of customer operations. Additionally, contingency plans have been put in place in various regions of the country.