Plug Power warns pausing DOE activities risks loan

Market: Hydrogen
13/11/25

US hydrogen and electrolyzer manufacturer Plug Power warned investors that suspending activities related to its Department of Energy (DOE) loan guarantee carries a risk of losing access permanently to the low-cost federal financing.

"Our decision to temporarily suspend activities related to the DOE loan could adversely affect our access to low-cast capital, delay project execution, and expose us to potential termination or modification of the DOE loan guarantee," the company said in a 10-Q form filed earlier this month with the Securities and Exchange Commission.

Plug Power announced this week that it was suspending activities related to the $1.7bn loan guarantee while it considers reallocating capital away from previously announced plans. The loan facility, granted in the final days of the outgoing administration of President Joe Biden, was supposed to have financed the development of up to six green hydrogen plants in the US. However, all of those activities were put on hold after the administration of President Donald Trump paused clean energy commitments made under Biden pending further review. After months of engaging with Trump's DOE, Plug Power suspended activities related to the loan in November, including "projects previously contemplated in New York and Texas," according to the filing.

Suspending activities on the projects may result in the DOE terminating the loan guarantee commitment if the agency determines Plug Power is not meeting required conditions or projected milestones, the company said. Plug Power has spent $250mn so far on the $800mn Texas project and expected to cover $400mn with the DOE loan. The company had been seeking an equity partner to make up the remainder of the cost.

Since suspending the activities, Plug Power has announced a spate of deals to raise liquidity and pivot away from federal support, including joint development projects with renewable fuel producers, international electrolyzer deals, and signing away electricity rights to raise cash.

Plug Power did not respond to a request from Argus for comment.

By Jasmina Kelemen

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

11/12/25

EU may crank up coal and steel research funds in 2027

London, 11 December (Argus) — The European Commission could fund a much larger share of research in the coal and steel industry from 2027, according to a staff working document published yesterday. The EU Research Fund for Coal and Steel (RFCS) would fund 70pc of corporate research and 100pc of academic research into green initiatives if the EU moves forth with the proposal. It currently funds 50pc of both corporate and academic research projects, but has struggled to attract participants or meet its spending targets, noting that the "underspending of the project is rooted in a lack of attractiveness of certain aspects of the programme". RFCS spent 57pc of its €43mn ($50mn) budget for large coal projects and only 31pc of its €208mn budget for steel research from 2021 to 2024. Brussels, troubled by a lack of applications, consulted companies and academics this year and found that its spending requirements were the largest barrier. Most were unable or unwilling to fund 50pc of large research projects themselves. RFCS has supported a number of groups hoping to repurpose old coal mines for clean energy. GreenJOBS and Mine-TO-H2, two funding recipients, both plan on making green hydrogen from mine water, while GrEnMine received pilot funding worth €3.5mn to research new ways to store gravitational energy in abandoned mines. Others, such as REM and GI-mine, are working on new methods to capture methane from coal mines. In the steel sector, RFCS has awarded funds to hydrogen power projects such as ProSynteg and HYDREAMS and research groups such as BIOCODE, which hopes to replace up to 10pc of the coal in coke ovens with biomass. The EU dissolved the European Coal and Steel Community (ECSC) — an agency tasked with making a common European steel market, which eventually led to the creation of the EU — in 2002. The EU used revenues from ECSC assets to launch and fund the RFCS in the same year, and boosted the programme in 2021 by tapping into the assets themselves. By Austin Barnes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

German cabinet passes EU RED III

10/12/25

News

10/12/25

German cabinet passes EU RED III

Hamburg, 10 December (Argus) — The German cabinet on 10 December approved legislation to implement the EU's Renewable Energy Directive (RED III) into national law. This will adjust the greenhouse gas (GHG) reduction quota and abolish double counting of advanced fuels from 2026. But it is unlikely to pass remaining legislative processes in time for the EU's 1 January deadline. The bill passed by the cabinet largely follows a draft dated 29 October that was leaked in November. The overall quota level will rise to 59pc by 2040. Aviation and marine fuels are exempt from the quota obligation. The law will end the eligibility of palm oil products, most notably palm oil mill effluent (Pome), for compliance towards the GHG quota. This exclusion, and a requirement for fuel producers to allow on-site audits, will not come into effect until 2027, leaving 2026 as a transitional year. The end of double counting for advanced biofuels removes a key point of market uncertainty. Under current rules, advanced biofuels can be counted as twice their energy value towards the GHG quota, provided the minimum sub-mandate for advanced fuels has been met. But the change to end double counting will apply to the entire compliance year and all subsequent years, meaning it will be retroactive to 1 January. The only exception is for fuels supplied prior to 1 January 2026. The law will enter into force on the second day after publication in the Federal Law Gazette, with selected sections taking effect a day earlier for procedural reasons. Before that can happen, the bill must be submitted to the Germany's lower and upper parliaments for debate. The lower house's approval is not required, and the upper house could initiate changes. The bill can only be submitted to the Federal President for his signature once the upper house has given approval. This process is likely to conclude in the first quarter of 2026. Changes to sub-quotas, RFNBOs, biomethane The sub-mandate for advanced biofuels, made from feedstocks listed in Annex IX of RED III, will rise to 9pc by 2040. The mandate for renewable fuels of non-biological origin (RFNBOs) — such as e-fuels and green hydrogen — is higher will rise to 2.5pc of an obligated company's energy mix in 2034, and then to 8pc in 2040. The penalty for non-compliance is €120/GJ. Imported biomethane can be counted towards the GHG quota, provided it meets certain conditions, such as a connection to the EU gas grid. The baseline emissions value is 94kg CO2e/GJ, aligned with the rest of the EU. The registration deadline with the main customs office is 1 June. The market for GHG certificates reacted immediately. Other certificates for 2025 are trading around €20/t CO2e higher than the previous day, and prices for 2026 certificates are rising. Prices for 2025 certificates are rising, although they are unaffected by the change. They are seen as a substitute for 2027 certificates because excess 2025 compliance will be carried over. Hydrotreated vegetable oil (HVO) could now play a central role in meeting the GHG quota, which can influence certificate prices. Demand for advanced HVO could increase significantly, as it can be counted without limit towards the GHG quota as a blending component and as a pure fuel and can be used in most of the existing diesel vehicle fleet. The end of double counting could increase demand for non-advanced biodiesel grades, such as rapeseed-based RME and used cooking oil-based Ucome. Although the eligibility of these is capped to a certain percentage of a company's energy mix, this limit has not always been fully utilised in the past. by Max Steinhau and Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Q&A: GH2 Solar outlines gaps slowing India’s H2 plans

09/12/25

News

09/12/25

Q&A: GH2 Solar outlines gaps slowing India’s H2 plans

Mumbai, 9 December (Argus) — Indian renewable energy firm GH2 Solar recently began construction of an alkaline electrolyser manufacturing plant in Madhya Pradesh, with an initial capacity of 105 MW/yr that it aims to expand to 500 MW/yr. The plant is developed with South Korea's AHES and UK-based Rhizome2, and received roughly 1.6bn rupees ($17.8mn) under India's second electrolyser manufacturing subsidy round. GH2 Solar also plans to build its own renewable hydrogen production facilities, having secured three-year subsidies for 10,500 t/yr of output. Argus spoke with managing director Anurag Jain and vice-president of business development and corporate strategy Sanjeev Sharma about the company's plans, views on Indian policy and localisation of key components for electrolysers. Edited highlights follow: What are the main challenges that GH2 Solar and other Indian companies face in bringing hydrogen and electrolyser projects to fruition? The challenges are quite multifaceted. For GH2 Solar, and most other Indian developers, the biggest hurdle is project bankability. The policy direction is clear, but long-term offtake certainty and stable price signals are still evolving, making lenders cautious. These are highly capital-intensive projects that combine renewable generation, balance-of-plant and storage, which means long financing cycles. Another issue is the intermittency of renewable energy, which affects electrolyser efficiency and utilisation. Managing that through batteries, round-the-clock power or hydrogen storage adds cost and complexity. India still imports critical components such as membranes and catalysts, so building a resilient domestic supply chain will take time. Add to that the need for skilled manpower, unified standards and insurance frameworks — it's a steep but achievable learning curve. How do you view India's tenders? Are they effective in driving adoption? The tenders have created momentum. The production-linked incentives (PLIs) and the National Green Hydrogen Mission bids have drawn strong private participation and signalled government commitment. But we must recognise they are first-generation schemes. Some frameworks expect immediate commercial viability and deep localisation, which can be unrealistic early on. We need longer offtake tenors, payment security mechanisms and phased localisation milestones. But the direction is right. The tenders have put India firmly on the global hydrogen map. What additional policy or regulatory measures could accelerate the sector? India should move quickly to introduce contracts for difference (CfDs) or carbon CfDs to bridge the cost gap between grey and green hydrogen. That single mechanism can transform project bankability. A national hydrogen exchange or government-anchored offtake pool would aggregate demand and provide transparent price discovery. We also need a payment security fund, harmonised pipeline and grid codes, and continued fiscal support for electrolyser research and development, especially for membranes and catalysts. What are the biggest challenges for developing a fully indigenous electrolyser manufacturing ecosystem in India? True localisation goes far beyond assembly. The challenge lies in mastering advanced materials — membranes, coated bipolar plates and catalysts — and building high-precision chemical and metallurgical capabilities. Domestic demand must scale enough to justify the capital intensity of these facilities. We also need accredited testing and certification centres in India to validate stack life and performance so that Indian-made systems are globally bankable. How can project financing for green hydrogen become more viable? Financing will follow predictability. Mechanisms such as CfDs, minimum-volume guarantees or sovereign-backed payment windows can provide stable revenue floors. Blended finance — mixing concessional debt and DFI [development finance institutions] participation — will lower the cost of capital. Allowing hydrogen assets to earn ancillary-service revenue from the grid can also enhance project economics. And finally, standardised project templates and due-diligence protocols will shorten financial-closure timelines. Offtake remains a bottleneck. What measures could resolve this? We need an aggregated demand framework. A government-backed platform that bundles demand from refineries, fertilisers, city-gas networks and even corporate buyers could issue unified offtake tenders. Sectoral mandates — such as blending targets in piped natural gas or compressed natural gas and substitution quotas in refineries — will anchor baseline demand. Tradeable green-molecule certificates would let corporates purchase decarbonisation credits even if they don't consume hydrogen physically. Internationally, India should also participate in global offtake auctions with the EU, Japan and Korea. What is GH2 Solar's long-term strategy for green hydrogen and its derivatives? Our strategy is to create an end-to-end green hydrogen ecosystem — from renewable electrons to green molecules. We're setting up a 105 MW/yr electrolyser manufacturing facility in Madhya Pradesh. Civil works are progressing, equipment orders are being worked out and pilot production is planned for late 2026, with full-scale operations set for 2027. We are simultaneously developing green hydrogen production facilities. In the short term, our focus is on domestic decarbonisation — supplying green hydrogen to refineries, fertiliser and industrial clients. In the medium term, we will expand into green ammonia — we have already announced a 100,000 t/yr green ammonia facility with two partners — and e-methanol and SAF [sustainable aviation fuel], especially for export markets. What is your view on the use of Chinese electrolysers in Indian projects? It is a pragmatic bridge. Chinese systems are currently cost-competitive and available quickly, which helps early adopters prove the business case. But India must avoid long-term dependence. Every import should come with localisation and technology-transfer clauses so that we can build domestic capability over the next 3-5 years. Our goal should be cost parity and self-reliance, not permanent import dependence. GH2 Solar was awarded the support for the electrolyser capacity with high local-value-addition (LVA) targets. How will you achieve these? We have created a detailed localisation roadmap. In the first year, we will source and assemble all balance-of-plant, frames, power electronics and casing domestically, importing only few specialised components, achieving 80pc LVA. From year two onwards, we will indigenise stack components through technology partnerships with Indian material suppliers, reaching more than 90pc localisation. Which components still need to be imported? At present, we still need to import membranes, catalysts and coated bipolar plates — the high-tech core of the stack. Domestic production of these components should start in the next 18-36 months through our joint venture and targeted PLI support. With consistent policy and demand visibility, India can achieve full indigenous capability within five years. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Singapore sets green power rules for new data centres

02/12/25

News

02/12/25

Singapore sets green power rules for new data centres

Singapore, 2 December (Argus) — Singapore has opened applications for at least 200MW of new data centre capacity, with adoption of novel green energy sources as a key criteria, the city-state's Economic Development Board and Infocomm Media Development Authority said on 1 December. The city-state is looking to host more cloud computing services against a backdrop of increasing competition in southeast Asia, while keeping the industry's power and emissions footprint in check. Applicants should have at least 50pc of proposed data centre capacity powered by "eligible green energy pathways", according to the Economic Development Board and Infocomm Media Development Authority. The pathways include biomethane, low-carbon ammonia, low-carbon hydrogen and novel fuel cells with carbon capture and storage. Solar panels are also listed, including advanced "building-integrated" variants where photovoltaics are built into new premises. Singapore launched a 300MW biomethane import trial in September and will appoint power generators as trade aggregators in early 2026. The city-state also has an ongoing low-carbon ammonia bunkering and 55-65MW power generation pilot. Singapore announced a 700MW data centre park at its energy and petrochemical hub Jurong Island in November, to expand on the over 1.4GW of existing cloud computing infrastructure. Data centre applicants under the latest exercise should meet "best in class" efficiency standards, including a power usage effectiveness of at most 1.25 at full load. Applications close at the end of March 2026. By Liang Lei Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

UK's Cadent delays HyNet H2 network for policy clarity

28/11/25

News

28/11/25

UK's Cadent delays HyNet H2 network for policy clarity

London, 28 November (Argus) — UK gas network operator Cadent has halted its planning application for the HyNet North West hydrogen pipeline, citing uncertainty about government timelines and subsidy allocation under the hydrogen transport business model (HTBM), which will not be finalised until spring 2026. Cadent had aimed to submit a development consent order (DCO) by end of 2025 after public consultations and front-end engineering design work, targeting a final investment decision (FID) in 2026 if government support materialises. But the firm said it will pause the DCO process, although environmental surveys and routing assessments will continue. Cadent said the government has confirmed it will finalise the HTBM and start the process for one hydrogen pipeline in spring 2026. The government said in July that the first regional hydrogen transport and storage network should start up by 2031. The operator said in June it plans to have the network operational in the early 2030s, probably to align with Essar Energy Transition's plans for its Stanlow site, and carry hydrogen from there. The plant's second phase will supply regional customers, while initial output will serve Essar's refinery. UK operators like Cadent are also waiting for clarity on hydrogen blending into existing gas grids as a fallback when industrial demand is low. Cadent has submitted evidence supporting up to 20pc blending in pilots. The delay adds uncertainty to the project, which may compete for HTBM support with other developers, potentially pushing back FID. Cadent did not respond to requests for comment. The HTBM is designed to make early-stage pipeline projects viable by guaranteeing returns. It combines a regulated asset base model — where operators earn a capped return on infrastructure costs — with government subsidies to cover revenue shortfalls while demand builds up. This gives investors long-term certainty needed for FID. HyNet's 125km pipeline network would link Stanlow to industrial users and blending points. The CO2 element of HyNet is progressing, with Eni reaching financial close on its storage site and Eni and Essar securing DCO approval for the CO2 pipeline. By Chingis Idrissov Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more

Plug Power warns pausing DOE activities risks loan

Related news posts

EU may crank up coal and steel research funds in 2027

EU may crank up coal and steel research funds in 2027

German cabinet passes EU RED III

German cabinet passes EU RED III

Q&A: GH2 Solar outlines gaps slowing India’s H2 plans

Q&A: GH2 Solar outlines gaps slowing India’s H2 plans

Singapore sets green power rules for new data centres

Singapore sets green power rules for new data centres

UK's Cadent delays HyNet H2 network for policy clarity

UK's Cadent delays HyNet H2 network for policy clarity

Related Products

Argus North American Long-Term Electricity Forward Curves

Argus North American Long-Term Electricity Forward Curves

Argus North American Long-Term Electricity Forward Curves

Argus North American Long-Term Electricity Forward Curves

Argus Carbon

Argus Low Carbon Hydrogen Strategy Report

Argus Hydrogen and Future Fuels

Business intelligence reports