Property, Plant and Equipment

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment

Property, Plant and Equipment

6. Property, Plant and Equipment

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

	March 31,		December 31,
	2024		2023
Land	$	5,951	$	6,049
Construction in progress		852,555		1,109,896
Hydrogen production plants		351,390		77,107
Building and leasehold improvements		96,850		95,229
Software, machinery, and equipment		243,198		229,352
Property, plant and equipment		1,549,944		1,517,633
Less: accumulated depreciation		(95,953)		(81,456)
Property, plant and equipment, net	$	1,453,991	$	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 March 31, 2024 and 2023, the Company capitalized $2.1 million and $2.0 million of interest, respectively.

Depreciation expense related to property, plant and equipment was $11.6 million and $5.5 million for the three months ended March 31, 2024 and 2023, respectively.