Plug Power gets conditional approval from DOE as class action lawsuit is announced 

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Plug Power learned this week that it had received a conditional commitment for an up to $1.66 billion loan guarantee from the Department of Energy’s Loan Programs Office to finance the development, construction and ownership of up to six green hydrogen production facilities. 

The production facilities will be built across the nation and supply major companies, including Plug’s existing customers, with low-carbon, green hydrogen.  The sites will be selected for financing in accordance with procedures to be set forth in definitive documentation with DOE.

“The loan guarantee will prove instrumental to grow and scale not only Plug’s green hydrogen plant network, but the clean hydrogen industry in the United States.” said CEO Andy Marsh, in a release.  

It was unclear what impact the news will have on Plug Power’s local sites.  

The Latham-based company did say in a release that its green hydrogen production plants utilize the company’s own electrolyzer stacks manufactured at its gigafactory in Henrietta, and Plug’s liquefaction and hydrogen storage systems engineered at its facility in Houston.

There was no mention of Plug Power’s plans for its proposed $677 million project at the Western New York Science & Technology Advanced Manufacturing Park (STAMP) in Genesee County. 

A Plug Power spokesperson released the following statement after a request from RBJ on the status of the Genesee County project: 

“Currently, the term sheet does not specify any of Plug’s projects. This structure should afford the DOE control over the qualification process of any proposed project, while also allowing Plug the flexibility in developing these first-of-a-kind projects.” 

The federal loan announcement came a day before the law firm Levi & Korsinsky LLP filed a class action securities lawsuit in the Southern District of New York Federal Court which seeks to recover losses on behalf of Plug Power investors who were adversely affected by alleged securities fraud between March 1, 2023 and Jan. 16, 2024. 

The filed complaint allegations include that Plug overstated its ability and/or efforts to mitigate the negative impacts that, among other things, supply chain constraints and material shortages could have or were having on the company’s hydrogen business, as well as the sufficiency of its cash and capital to fund its operations.  

There has also been local litigation.

The John W. Danforth Co. on April 25 filed a lawsuit in state Supreme Court against the company.

Danforth was contracted by Plug Power to do plumbing, HVAC and electrical work on a construction and renovation project at its Henrietta location.

Starting in July 2023, Plug Power stopped paying Danforth for work on the project, “and has failed and refused to pay Danforth on invoices issued since that time,” according to the complaint.

Danforth claims that Plug Power owes $1.1 million for its work on the project.

Additionally, Conquest Construction Consultants LLC also filed a lawsuit against Plug Power on April 22 in Albany County claiming Plug owes nearly $490,000.

Conquest was hired as a construction manager for Plug Power.

“As a result of defendant’s failure to pay, plaintiff found it necessary to lay off all its employees, lost profits related to its performance under the agreement, (and) lost profits from business opportunities with other contractors as a result of its agreement with defendant,” according to the complaint.

The lawsuit seeks the $489,776.99, plus interest, attorney fees and “consequential damages in an amount to be determined at trial but estimated to be $1 million.”

Shares of Plug Power were trading midday at $3.46, on the low end of its 52-week range of $2.25 to $13.44.

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