Plug Power, Inc. ( PLUG )  shares are trading higher after the company received a conditional commitment for an up to $1.66 billion loan guarantee from the Department of Energy.

The Department of Energy’s Loan Programs Office gave the contract to Plug Power ( PLUG ) to finance the development, construction, and ownership of up to six green hydrogen production facilities.

Plug’s projects under the loan will adhere to the Biden Administration’s Justice 40 Initiative.

Plug runs the largest proton exchange membrane PEM electrolyzer system in the U.S. at its Woodbine, GA, plant, the company said in a press release. Its green hydrogen network can produce around 25 tons of liquid hydrogen daily.

“Green hydrogen is an essential driver of industrial decarbonization in the United States,” said Plug Power ( PLUG ) CEO Andy Marsh. “We appreciate the partnership with the DOE Loan Programs Office and are pleased to have worked through an intensive due diligence process.”

The production facilities, to be chosen for financing following procedures outlined in forthcoming documentation with the Department of Energy, will be established nationwide. They will provide major corporations, including Plug Power’s current clients, with domestically produced, low-carbon green hydrogen.

The hydrogen generated will be used in applications in the material handling, transportation, and industrial sectors.

“Earlier this year, Plug successfully demonstrated our innovation and technical ability by launching the first commercial-scale green hydrogen plant in the country in Woodbine, Georgia. This loan guarantee will help us build on that success with additional green hydrogen plants,” Marsh added.

While this conditional commitment represents a significant milestone and demonstrates the Department of Energy’s intent to finance the project, specific technical, legal, environmental, and financial conditions, including negotiation of definitive financing documents, must be satisfied before funding of the loan guarantee.

Price Action: PLUG shares are trading higher by 64.4% to $4.75 premarket at last check Tuesday.