Property, Plant and Equipment

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment

Property, Plant and Equipment

6. Property, Plant and Equipment

Property, plant and equipment as of September 30, 2024 and December 31, 2023 consisted of the following (in thousands):

	September 30,		December 31,
	2024		2023
Land	$	5,845	$	6,049
Construction in progress		930,505		1,109,896
Hydrogen production plants		370,104		77,107
Leasehold improvements		97,022		95,229
Software, machinery, and equipment		249,091		229,352
Property, plant, and equipment		1,652,567		1,517,633
Less: accumulated depreciation		(118,511)		(81,456)
Property, plant, and equipment, net	$	1,534,056	$	1,436,177

Construction in progress is primarily comprised of construction of three hydrogen production plants. Completed assets are transferred to their respective asset classes, and depreciation begins when an asset is ready for its intended use. Interest on outstanding debt is capitalized during periods of capital asset construction and amortized over the useful lives of the related assets. During the three months ended September 30, 2024 and 2023, the Company capitalized $3.1 million and $2.0 million of interest, respectively. During the nine months ended September 30, 2024 and 2023, the Company capitalized $8.3 million and $6.0 million of interest, respectively.

Depreciation expense related to property, plant and equipment was $12.6 million and $10.2 million for the three months ended September 30, 2024 and 2023, respectively. Depreciation expense related to property, plant and equipment was $37.3 million and $23.0 million for the nine months ended September 30, 2024 and 2023, respectively.