Norway betting on Plug Power’s hydrogen strategy
SLINGERLANDS - The government of Norway is making a big bet on Plug Power and its green hydrogen strategy.
Plug Power is the Slingerlands-based fuel cell company that is also making "green" hydrogen, considered to be one of the most promising renewable energy fuel sources that could power everything from cars and homes to data centers without releasing carbon into the atmosphere, a major cause of climate change.
The country of Norway, which is heavily invested in both carbon and renewable energy sources, is a huge investor in the U.S. economy. Norges Bank, the central bank of Norway, owns large stakes in companies like Microsoft, Apple and Exxon.
Norges Bank also oversees the government pension plan in Norway.
Plug Power told U.S. securities regulators on Oct. 10 that Norges Bank has acquired a 7.95 percent stake in Plug Power, making it one of the largest shareholders in the company with nearly 70 million shares.
Some of Plug Power's large shareholders in the past have had a business relationship with Plug Power, like Amazon and Walmart, which use Plug Power's fuel cells in their warehouse forklifts. But this investment is not tied to any fuel cell sales.
"Norges Bank's acquisition reflects typical institutional investor trading activity versus any specific business relationship between Plug and Norway," Paul Middleton, Plug Power's chief financial officer said. "We expect it's a result of interest generated by our recent investor conference presentation circuit, and a sign that key investors recognize the strength of our business and the potential of the hydrogen sector overall."
A Norges Bank spokesperson could not immediately be reached for comment.
Shares of Plug Power were trading Wednesday at slightly more than $2 per share. Over the past 12 months, Plug Power's shares have traded between $1.60 per share and $7.60 per share. The company has a stock market value of $1.8 billion.
Foreign investors have taken stakes in Plug Power before. Almost 20 years ago, the Russian investment firm Interros invested more than $200 million in Plug Power along with Norilsk Nickel, a Russian mining firm, to take a large stake in Plug Power at a time when the company was short on cash. Plug Power also received a large investment from SK Group, a South Korean conglomerate, in 2021.
Plug Power is essentially trying to corner the global market for "green" hydrogen, which is hydrogen extracted from water rather than methane gas, a much more climate-friendly way to make hydrogen. Plug Power is already the world's largest purchaser of hydrogen, and it has been building "green" hydrogen factories across the world.
The company lost $262 million in the second quarter of this year on $143 million in revenue as it expands faster than its revenues are increasing. The company says it needs to invest in expanding the market for green hydrogen across the world to unlock the value of its fuel cell business, which uses hydrogen as its fuel. When used in fuel cells, hydrogen's only byproduct is water vapor and hot air.
This story was originally published October 16, 2024, 8:44 PM.
