Plug Power, a U.S.-based provider of hydrogen engines and fueling solutions enabling e-mobility, announced that it raised around $1 billion in one of the largest bought equity deals in the cleantech sector.

With this recently completed capital raise, the company’s post-closing cash balance stood at $1.7 billion. The company said that the new investments would be utilized to implement and advance its green hydrogen strategy and other strategic growth initiatives.

“We are very pleased with the reception from the institutional investors and the market, resulting in a meaningfully upsized capital raise. This ideally positions Plug Power to accelerate the growth of the green hydrogen economy in the United States and globally,” said Andy Marsh, Chief Executive Officer of Plug Power.

The company recently unveiled its plans to develop five regional green hydrogen facility in the United States. It stated that it would continue to work with its strategic partners, including Brookfield Renewable and Apex Clean Energy, to source low-cost renewable energy.

Green hydrogen projects are hydrogen electrolyzer projects powered by renewable sources.

According to its press statement, all five green hydrogen facilities, with a production capacity of around 100 tons per day, will be operational by 2024. The first two green hydrogen facilities are expected to become operational in 2022.

“We have identified several locations working with strategic partners where we can produce green hydrogen at parity with grey hydrogen and see further opportunities to reduce the cost of green hydrogen,” said Sanjay Shrestha, Chief Strategy Officer and Head of Plug Power’s green hydrogen generation business.

Plug Power said that the generated hydrogen would help decarbonize transportation and logistics industries and facilitate the anticipated growth of the hydrogen economy. The global hydrogen economy could reach $2.5 trillion by 2050, representing 18% of the worldwide energy demand, according to management consultancy McKinsey & Company.

According to Rystad Energy research, the global pipeline of utility-scale green hydrogen projects with capacities greater than 1 MW now exceeds 60 GW, with 87% of this capacity coming from gigawatt-scale projects.

Recently, a hydrogen production and adoption model prepared in the U.K. suggested that hydrogen could solve its power storage issues. Electricity generated from offshore wind projects can be used to produce hydrogen by electrolyzing seawater. According to the study, hydrogen can be transported through pipelines and stored to produce more electricity later when renewable power generation dips. Hydrogen can also be used in industrial heating applications and transport. It could be one of the least-cost pathways to reducing carbon emissions.