Property, Plant and Equipment

12 Months Ended

Dec. 31, 2024

Property, Plant and Equipment

Property, Plant and Equipment

9. Property, Plant and Equipment

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

	December 31,		December 31,
	2024		2023
Land	$	5,597	$	6,049
Construction in progress		502,936		1,109,896
Hydrogen production plants and related equipment		343,094		77,107
Leasehold improvements		15,633		95,229
Software, machinery, and equipment		40,861		229,352
Property, plant, and equipment		908,121		1,517,633
Less: accumulated depreciation		(41,792)		(81,456)
Property, plant, and equipment, net	$	866,329	$	1,436,177

The decrease in the Company’s property, plant and equipment balance was primarily due to impairment, depreciation and the Company’s bifurcation of the ITC credit in the amount of $31.3 million. The Company recorded impairment charges totaling of $681.2 million, $3.1 million and $0.8 million for the years ended December 31, 2024, 2023 and 2022, respectively.

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. For the years ended December 31, 2024 and 2023, we capitalized $8.3 million and $8.2 million of interest.

Depreciation expense related to property, plant and equipment was $42.8 million, $33.3 million and $19.0 million for the years ended December 31, 2024, 2023 and 2022, respectively.