Plug Power abandons hydrogen to bet big on grid electricity supply
Plug Power has announced a major shift in strategy, moving away from hydrogen production to focus on supplying electricity to the grid. The company's latest financial results show signs of recovery, with its first positive gross profit in years. A key part of this transition involves selling its Project Gateway site in New York for $132.5 million to boost liquidity.
The company's revenue grew by 12.9% in fiscal 2025, reaching around $710 million. This increase was driven mainly by higher equipment sales. Despite this progress, Plug Power still faces significant challenges, with operating losses totalling roughly $1.5 billion and cash outflow from operations hitting approximately $535.8 million last year.
By the second quarter of 2026, the success of Plug Power's new strategy will become clearer. The company plans to supply up to 250 megawatts of hydrogen-based electricity to the PJM Interconnection grid in the U.S. The first auction results for this initiative are expected soon, which will help determine its viability.
Plug Power is also selling its Project Gateway site in New York's STAMP industrial park to Stream Data Centers for $132.5 million. The deal is set to close by June 30, 2026, and forms part of a broader plan to improve liquidity by over $275 million. Under the leadership of CEO José Luis Crespo, who took over in early March 2026, the company aims to achieve positive adjusted EBITDA by the end of 2026, positive operating income by the end of 2027, and full profitability by the end of 2028.
While Plug Power's hydrogen fuel cells, like the GenSure system, are gaining interest for backup and auxiliary power in AI data centres, they remain too costly for primary supply. Larger operators have yet to commit to concrete agreements or pilot projects, with many preferring alternatives such as small modular reactors (SMRs).
Plug Power's financial turnaround is underway, marked by its first positive gross profit of $5.5 million in late 2025. The sale of the Project Gateway site and the push into grid electricity supply signal a strategic pivot. If successful, this move could position the company as a key player in powering AI data centres, though challenges remain in securing large-scale adoption.
