Hydrogen producer and equipment manufacturer Plug Power has boosted its liquidity through the transfer of a federal investment tax credit (ITC) to an unspecified investor, tapping a financing mechanism more commonly used by solar and wind projects.
This is the first time that Plug Power has taken advantage of transferability rules laid out under the Inflation Reduction Act (IRA) of 2022 and it is among the first such deals for hydrogen storage and liquefaction assets, Plug said Monday. The deal comes just days after President Donald Trump ordered a pause to IRA-related funding that has left many in the sector wondering about the fate of hydrogen-related disbursements. In an ITC transfer, a renewable-energy developer can sell a tax credit and receive a one-time, up-front payment. As of last April, when the US Treasury Department finalized ITC rules intended to accelerate the construction of clean energy projects, "the bulk" of transferability-related registrations were related to solar and wind projects, Treasury said.
Plug qualified for the ITC through its investment in liquefaction and storage technologies at its Woodbine, Georgia, hydrogen plant, which began production early last year. The 15 metric tonne/d plant can also claim production tax credits under section 45V for green hydrogen production, Plug said.
By Jasmina Kelemen
