Plug Power (NASDAQ: PLUG) stock had a rollercoaster week, surging by 15.3% before taking a nosedive. This volatility can be attributed to the company’s new equipment leasing platform, aimed at raising $150 million in the near term. However, a development in the clean energy industry cast a shadow over Plug Power’s stock.
The new equipment leasing platform allows Plug Power to receive lump sum payments for equipment while retaining the right to use them. This influx of cash could help the company cover operational expenses amidst dwindling sales and mounting losses. In fact, Plug Power issued a going concern warning last year, highlighting the urgency of securing funding. Additionally, Plug Power is in talks with the Department of Energy for a conditional loan guarantee of up to $1.66 billion.
While Plug Power secured an order for 25 megawatts of electrolyzers, signaling an interest in green hydrogen, other clean energy sources like nuclear power are gaining momentum. Utility giant Constellation Energy’s plan to provide carbon-free electricity to tech giant Microsoft’s data centers through nuclear power could potentially pose a threat to the green hydrogen industry.
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