The Drover Rideshare website is about everything sustainable. That said, how can we not talk about this giant metaphoric elephant in the room? Plug Power Inc.
New York Governor Andrew Cuomo announced that a $290-million investment from Plug Power is on its way. The money is allocated for building a hydrogen fuel production setup and an electric substation in the state’s Genesee County.
Additionally, the alternative-fuel solutions firm made an upsized offering of 28 million shares in January to raise funds.
So, these news briefs suggest that it’s an opportune moment to know more about the company.
Here are some mind-blowing facts about Plug Power. Well, most of them are!
It Has Been for Over Two Decades
Only in recent years has the world caught on to renewable energy sources and sustainability. But Plug Power had the foresight as early as 1997.
It started as a collaboration of Mechanical Technology Incorporated and DTE Energy Company. Two years later, the organization debuted in the stock markets at $160 a share. Their earliest offering - Plug Power fuel cell solutions - got the ball rolling at the turn of the millennium. Eventually, they opened up doors for data centers, utility zones, railroads, and other industries.
You can now find its footprint in over 45 states of the US and 35 countries globally. That suggests that many global firms are lo’s surprising, considering that corporate investors have backed it for many years now.
It’s Yet to Turn Profitable
Plug Power’s billings seem to be on the rise, but it’s yet to see a windfall when it comes to profits. It’s surprising, considering that corporate investors have backed it for many years now.
The fourth quarter of 2020 saw revenues plunge to a negative $316 million. It’s three times lower than the same quarter's 2019 figures, indicating that COVID-19 has taken a toll.
Making matters worse, the net loss per share increased fifteen times to reach $1.12.
On the other hand, SK Group’s $1.6 billion capital infusion comes as a positive sign for the retail investors keeping their fingers crossed.
A Gigafactory is in the Works
No, Plug Power isn’t a part of Tesla’s grand battery-park plans. The firm is building its gigafactory to become the only proton-exchange membrane manufacturer of this scale.
The company is all set to produce 60,000 fuel cell stacks annually, with an output contribution of 1.5 gigawatts.
CEO Andrew Marsh kept the factory’s location under wraps until Sen. Chuck Schumer broke the news to the world. Western New York’s Genesee County will house the 2 lakh sq ft production facility, creating nearly 100 new jobs in the area.
If everything goes according to plan, we could see them meeting targets as early as 2024.
Going All-in On Hydrogen
Unlike many other alternative-fuel companies, Plug Power hasn’t diversified its business extensively. It continues to have faith in its core product - hydrogen fuel cell production.
Their batteries get recharged in a matter of minutes, whereas lead-acid ones are known to take at least a few hours. Besides, the forklifts that Plug Power powers do not experience any kind of hang whatsoever.
In an ambitious move, the company is also planning to launch a line of small-scale aircraft. Their propulsion systems will be powered using hydrogen fuel cells and will have a range of 600 miles. Sustainable aerial ride services seem to be the future.
Many Big Investors Are Betting On Its Future
Plug Power has the backing of many legacy venture capitalists and hedge funds, who own over half of the company’s shares.
Blackrock Inc. leads the pack with a stake of 10.05%, followed by The Vanguard Group that owns 8.62% of the company. Other institutional backers like Shaw D.E. & Co. and Geode Capital have a minor stake that cumulatively amounts to 15%.
If such names continue to back Plug Power, securing future funding rounds shouldn’t be a problem.
Moreover, having them on board will help retail investors look beyond the fact that Plug Power is currently unprofitable.
Its Clientele Also Includes Some Big Names
More than investors, it’s the clients’ faith that decides the growth trajectory of the company.
The first-ever forklifts were purchased by the likes of Nike, Whole Foods, and BMW. And when it rolled out the flagship GenDrive system forklifts, the US Postal Service became the first takers.
Walmart, Amazon, Home Depot, and a few other billion-dollar firms have been onboard for a long time now.
Its Stock Recently Made 15-Year Highs
Whatever’s said and done, we all want to know how public companies fare in the market.
After Plug Power’s $1-billion deal with Renault came through, fund managers and investors termed it a “transformative” move. The joint venture is targeting 30% of the fuel-cell drive automobile market.
With investors showering praises, its stock price soared to new highs of $67 in mid-January. While it is nowhere close to the all-time high of $1,200, it spells that there’s more to come.
The future certainly seems to be bright for Plug Power, and many growth investors are willing to hedge their bets on it. What remains to be seen is whether the hydrogen cells can fuel growth and translate into profits.
Want to know more sustainable technologies? Drover Rideshare website’s previous posts have got you covered. Right from EVs to rideshare service offerings, we have written about many of the latest happenings. Go ahead and find out more - here.
