The government of the United States just made history with the largest loan ever granted for the production of clean hydrogen.
What’s happening:
- Plug Power (NASDAQ: PLUG) has announced they have received a commitment for a $1.6B USD loan from the United States Department of Energy Loan Office to accelerate the development of new clean hydrogen facilities
Why it matters:
- This is the largest loan ever granted by the United States government for clean hydrogen production
- Green hydrogen has the potential to play an enormous role in the race towards net zero emissions, as it’s a potential fuel source for everything from commercial vehicles to airplanes
By the numbers:
- The $1.6B USD loan will go towards funding 6 state of the art clean hydrogen production facilities across the United States
- Clean hydrogen production emits approximately 84% less greenhouse gases into the environment than traditional hydrogen production, which typically relies on fossil fuels
Market reaction:
- Plug Power shares are up more than 25% since the announcement
Going deeper:
- Plug Power previously made waves with the launch of the first ever green hydrogen production facility to be operational in the United States
The intrigue:
- Chevron (NYSE: CVX) recently announced they are developing a new hydrogen production facility located in California that is anticipated to produce 2 tons of hydrogen per day once fully constructed and operational
