Plug Power overhauls hydrogen business, sells tax credits to boost liquidity

Plug Power is executing a major restructuring dubbed Project Quantum Leap, aiming to lean on higher‑margin hydrogen products while trimming loss‑making units. The company reported a sharp improvement in gross margin to –13% in Q1 and expects positive EBITDA by the fourth quarter.

Electrolyzer sales surged 343% year‑on‑year to $40.8 million, driven by strong demand in Europe and EU RED III mandates that could require 4‑6 GW of capacity by 2030. Plug is also expanding in‑house hydrogen production at plants in Tennessee, Georgia and Louisiana, securing its fuel supply chain.

To strengthen its balance sheet, Plug sold a $39.2 million federal tax credit tied to its Louisiana liquefaction plant and previously monetised a $30 million credit for a Georgia project. The moves accompany Q4 revenue of $194 million, beating estimates, and a 23% rise to $163 million in Q1.