Plug Power Secures Strategic Foothold with First African Green Hydrogen Plant

Plug Power US72919P2020

Plug Power Inc. has achieved a significant strategic milestone with the commissioning of Africa's first commercial-scale green hydrogen production facility. Located in Walvis Bay, Namibia, the new plant utilizes a 5-megawatt electrolyzer supplied by the U.S.-based firm. This project serves as a critical demonstration of Plug Power's technology transitioning from pilot phases to real-world, commercial application, providing locally produced hydrogen to fuel trucks, port vehicles, and ships.

This advancement in Namibia arrives amidst a period of substantial financial challenge for Plug Power. For the first nine months of 2025, the company reported a net loss of $785.6 million against revenues of $484.7 million. Its share price has declined approximately 17% over the past month and is down more than 91% over a five-year period.

In response, management is executing a restructuring plan dubbed "Project Quantum Leap," targeting over $200 million in annual savings through workforce reductions, site consolidations, and lower operational expenditures. Concurrently, the company is aggressively pursuing international growth. Beyond the Namibia venture, Plug Power recently secured a $2.8 million contract with NASA, established a cooperation agreement in France, and won three projects in the United Kingdom with a combined capacity of 55 megawatts.

Inside the Namibian "Hydrogen Dune" Project

Developed by Cleanergy Solutions Namibia, the integrated "Hydrogen Dune" system comprises several key components:

• A 5-megawatt PEM electrolyzer from Plug Power.
• A solar farm spanning more than 6.5 hectares.
• Battery storage with a capacity of 5.9 MWh.
• A public hydrogen refueling station.

The hydrogen produced on-site will be deployed directly at the Port of Walvis Bay. In addition to supplying new heavy-duty vehicles, the facility will also retrofit conventional vehicles to run on hydrogen. Jose Luis Crespo, President and Chief Revenue Officer of Plug Power, described the project as a replicable model for future sites across the African continent.

Path to Profitability and Market Position

Plug Power has outlined a clear financial roadmap, targeting positive EBITDA by the end of 2026, a positive operating income in 2027, and full profitability in 2028. Following a recently completed financing round, the company holds $399 million in cash and has eliminated its senior debt.

With more than 72,000 fuel cell systems deployed and 285 refueling stations globally, Plug Power maintains its position as the largest user of liquid hydrogen. Its client portfolio includes major corporations such as Walmart, Amazon, Home Depot, and BMW. Nevertheless, significant hurdles remain, including high infrastructure costs, regulatory uncertainty surrounding U.S. green hydrogen subsidies, and intensifying competition from established energy giants. The coming quarters will reveal whether the African expansion and other international projects can provide the momentum needed for a sustained turnaround.