Plug Power, a U.S.-based hydrogen fuel cell company, experienced a wider net loss of $236.4 million in the second quarter (Q2) of 2023, compared to $173.3 million in the same period last year.

The increase in net loss was attributed to significant cost escalation in areas such as sales, services, and power purchase agreements. Operating expenses also surged mainly due to higher research and development, administrative expenses, and impairment charges.

The company’s revenue came in at $260.2 million, a year-over-year (YoY) increase of 71%, the highest quarterly revenue in the company’s history. The sale of equipment and related infrastructure accounted for the largest chunk of the revenue at ₹216.3 million.

The company said it is actively working to optimize and increase production at its Georgia green hydrogen plant. The final commissioning stages are ongoing, aiming for 17.5 tons per day of on-site production by Q3 2023.

The expansion in Georgia is expected to significantly reduce fuel margin losses, potentially by half, from Q2 to Q4 2023.

Plug Power’s cryogenics and liquefier business achieved sales of $69.7 million in Q2 2023, marking a substantial rise from $18.2 million in Q2 2022. With a promising backlog, positive bookings outlook, and ongoing capacity enhancement, Plug Power expects this sector to generate considerable revenue and margin growth in the latter part of 2023.

Half Year

Plug Power’s net loss increased to $442.9 million in the first half (1H) of 2023, compared to $329.8 million in the same period last year. The increase in the net loss could be attributed to the increased operating expenses, primarily in research and development.

The company’s revenue came in at $470.5 million, a YoY increase of 61%, driven mainly by the sales of equipment and related infrastructure, which was reported at $393.38 million.

The increased costs went towards electrolyzer production optimization, scaling the new Vista facility, and launching new application products. Additional costs also included higher fuel costs due to unplanned hydrogen plant maintenance and elevated hydrogen pricing on the West Coast.

Regarding expansion, the company has plans for a significant organic increase in its proton exchange membrane stack manufacturing capacity in Rochester. The aim is to exceed the initial nameplate capacity of 2.5 GW per year, potentially reaching up to three times that capacity.

The Vista Fuel Cell Manufacturing Facility holds responsibility for manufacturing all GenDrive fuel cell units and has effectively introduced the high-power stationery and mobility ProGen fuel cell manufacturing lines.

Plug Power’s net loss widened to $206.6 million in Q1 FY2023 from $156.5 million YoY as the margins were squeezed by higher hydrogen molecule costs caused by elevated natural gas prices and supply chain disruptions.

The company recorded a revenue of $220.7 million in Q4, a YoY increase of 36% compared to $162 million during the corresponding period in 2021.