Plug Power, a U.S.-based developer of hydrogen fuel cell turnkey solutions, recorded a revenue of $220.7 million in Q4, a year-on-year (YoY) increase of 36% compared to $162 million during the corresponding period in 2021.

The company’s gross margin for the quarter was negative 36% compared to negative 54% in Q4 2021, reflecting improvement on a YoY basis.

The company said due to supply chain issues, new product scaling, and manufacturing facility ramping, it experienced higher-than-average scrap and unfavorable absorption costs in the quarter.

Some of these issues impacted the timing and scaling of certain reliability investments in the deployed base, which resulted in higher-than-average service loss contract accruals.

Plug Power said prices paid for third-party hydrogen were up 8% sequentially during the quarter but was seeing a crest point due to the reversal of natural gas prices which are currently down over 75% from the June 2022 highs.

As a result, Plug Power said they are seeing a 15% decrease in prices paid for the bulk of their third-party hydrogen in the first quarter of 2023 and expect this downward trend to stay for the rest of the year if natural gas continues to drop.

Full Year 2022

Plug Power recorded a net loss of $724 million in 2022, an increase of 57.4% YoY compared to a loss of $459.96 million in 2021.

The company recorded a total revenue of $701.44 million, a YoY increase of 39.6% compared to $502.34 million the year before.

The company said 2022 activities built the foundation for revenue growth and margin expansion.

Plug entered into multiple green hydrogen supply agreements, including Walmart, Amazon, and other mobility customers, for a total sales pipeline approaching 200 tons per day (TPD).

The company also successfully tested a 3 MW stationary fuel cell unit with Microsoft. Plug ended the year with 2 GW of backlog for the electrolyzer business.

Plug was selected by New Fortress Energy for a 120 MW green hydrogen plant on the Gulf Coast and also started construction on multiple green hydrogen plants in the U.S. and began work on the 35 TPD port of Antwerp project in Belgium.

The company said it is building the world’s first end-to-end green hydrogen ecosystem and is on track to have 500 TPD of green hydrogen generation network in North America by 2025 and 1,000 TPD globally by 2028.

Plug recorded a net loss of $170.76 million in the third quarter of 2022, a YoY increase of 60% from $106.67 million.