Shares in US electrolyser and fuel-cell manufacturer Plug Power have fallen to a four-year low after it revealed plans to sell up to $1bn of its common stock in a bid to raise much-needed cash.

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The company, which also produces its own green hydrogen in-house, had warned in November that it may have to fold in the next year due to continued operating losses.

In a recent letter to shareholders, Plug stated that it would need to raise additional capital to follow through with its business plan, which includes building a new gigafactory in South Korea (with local conglomerate SK Group).

On Wednesday, it revealed in a filing to the US Securities and Exchange Commission that it had engaged B Riley Securities to sell up to $1bn of its common stock “from time to time”.

Plug’s share price fell around 15% following the announcement, but it had been fairly steadily falling since the summer.

At the time of going to press, the shares had sunk to $2.35 — an 87% drop since the $17.89 seen on 2 February last year, and the lowest level since September 2019. This is all a long way from its all-time high of $66.87 in January 2021.

Plug Power — which also makes fuel-cell engines, H2 refuelling and liquefaction equipment, and hydrogen-based back-up power systems — is due to provide an annual business update next Tuesday.

As Hydrogen Insight reported in our review of 2023, subsidy delays last year translated project delays, and the predicted uptake in electrolyser orders did not materialise — and almost all publicly listed electrolyser makers saw lower than expected income and subsequent drops in their share prices.