Plug and Uline Expand Partnership to Supply Hydrogen and Fuel Cells at Four Additional Sites
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Insights
The expansion of Plug Power's partnership with Uline represents a significant investment in green energy infrastructure within the logistics and distribution sector. The integration of on-site hydrogen infrastructure is a forward-thinking move that aligns with broader market trends towards sustainability and operational efficiency. The addition of 250 fuel cell forklifts, along with an 18,000-gallon hydrogen storage tank and multiple dispensers, indicates a substantial commitment to reducing carbon footprint and enhancing productivity through quicker refueling times compared to traditional battery-operated forklifts.
From a market perspective, this deal could signal to investors and competitors alike that Plug Power's technology is not only viable but also scalable for large operations. The focus on same-day turnaround times by Uline underscores the importance of reliability and efficiency in fuel cell solutions. As Uline plans to construct more buildings and expand its campus, the demand for such green solutions is likely to grow, potentially opening up more markets for Plug Power and similar companies in the renewable energy sector.
Plug Power's expanded partnership with Uline, including a $20 million investment, could have a notable impact on Plug's financials. The scale of the deal, with Uline becoming one of the largest Plug customers, suggests a strong revenue stream over the next several years. This long-term commitment may improve Plug's cash flow predictability and provide a solid foundation for future growth investments.
Investors should monitor Plug's upcoming financial statements for increases in revenue and possibly margins, given the scale of the deployment. However, they should also be aware of the capital expenditures required for such infrastructure projects and how these might affect short-term profitability. The market reaction to this news will likely depend on the perceived balance between the upfront costs and the long-term benefits of the deal.
This partnership is a case study in how companies are increasingly adopting sustainable practices that also enhance operational efficiency. Uline's investment in hydrogen fuel cell technology showcases a commitment to reducing emissions within their supply chain. The operational benefits mentioned by Wade Goff, such as faster refueling times leading to increased productivity, demonstrate that sustainability can go hand-in-hand with performance.
For stakeholders concerned with environmental impact, this collaboration with Plug Power is an example of how corporate responsibility and business acumen can merge. The deployment of a large-scale hydrogen infrastructure could serve as a model for other companies in the industry, potentially influencing broader adoption of green technologies and possibly contributing to a decrease in overall industry carbon emissions.
8-year partnership and
LATHAM, N.Y., Feb. 23, 2024 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, and Uline, the leading distributor of shipping, industrial and packaging materials to businesses throughout North America, announced their expanded partnership to deploy Plug’s hydrogen infrastructure and fuel cell solutions at Uline’s new campus in Kenosha, Wisconsin.
This expanded partnership includes the integration of on-site hydrogen infrastructure with the installation of a 18,000-gallon hydrogen storage tank and 17 hydrogen dispensers to service four distribution centers within the campus. The partnership also includes the addition of 250 fuel cell forklifts that will operate on hydrogen generated on-site through Plug’s state-of-the-art infrastructure.
“When we first partnered with Plug, fuel cells were still in their infancy,” said Wade Goff, Director of Redistribution. “They’ve made our associates more productive because refueling is faster and easier than changing a battery. Hydrogen is a good match with Uline’s three operating principles: Speed, Passion and Operational Excellence.”
Plug’s hydrogen infrastructure to support the entire campus is set to be commissioned and fully operational within the next ten months, with the first new distribution center in the campus slated to be completed this year. Uline plans to construct three more buildings over the next several years as part of the strategic campus build out.
“The ongoing expansion of our eight-year partnership with Uline stands as a testament to the remarkable impact our hydrogen and fuel cell technology has on material handling operations,” said CEO, Andy Marsh. “Given Uline’s business strategy of same day turn-around, productivity and predictability are important and are key benefits that Plug’s fuel cell solutions deliver to Uline.”
The collaboration between Plug and Uline began in 2015 at Uline’s distribution center near its 200-acre corporate campus in Pleasant Prairie, Wisconsin. Over the past 8 years, Uline has used Plug’s fuel cell solutions in its operations, operating 270 fuel cell forklifts between their six facilities. With this expanded partnership, Uline will operate a total of 520 fuel cells and 34 dispensers across ten facilities, making them one of the largest Plug customers.
About Plug
Plug is building an end-to-end green hydrogen ecosystem, from production, storage, and delivery to energy generation, to help its customers meet their business goals and decarbonize the economy. In creating the first commercially viable market for hydrogen fuel cell technology, the company has deployed more than 60,000 fuel cell systems and over 180 fueling stations, more than anyone else in the world, and is the largest buyer of liquid hydrogen.
With plans to operate a green hydrogen highway across North America and Europe, Plug built a state-of-the-art Gigafactory to produce electrolyzers and fuel cells and is developing multiple green hydrogen production plants targeting commercial operation by year-end 2028. Plug delivers its green hydrogen solutions directly to its customers and through joint venture partners into multiple environments, including material handling, e-mobility, power generation, and industrial applications.
For more information, visit www.plugpower.com.
Plug Power Safe Harbor Statement
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Plug Power Inc. (“PLUG”), including but not limited to statements about: Plug and Uline expanding their partnership; Uline deploying Plug hydrogen infrastructure and fuel cells at Uline’s new campus in Kenosha, Wisconsin; Integration of on-site hydrogen infrastructure, installation of a 18,000 gallon hydrogen storage tank and 17 hydrogen dispensers that will service four distribution centers; The addition of 250 fuel cell forklifts that will operate on hydrogen generated on-site through Plug’s infrastructure; Plug’s hydrogen infrastructure to be commissioned and operational within the next ten months, with the first new distribution center slated to be completed this year; Uline’s plans to construct three more buildings over the next several years as part of the strategic campus build out; Uline operating a total of 520 fuel cells and 34 dispensers across ten facilities; Plug’s development of multiple green hydrogen production plants targeting commercial operation by year-end 2028. Such statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of PLUG in general, see PLUG’s public filings with the Securities and Exchange Commission (the “SEC”), including the “Risk Factors” section of PLUG’s Annual Report on Form 10-K for the year ended December 31, 2022 and any subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, and PLUG undertakes no obligation to update such statements as a result of new information.
MEDIA CONTACT
Kristin Monroe
Allison+Partners
plugPR@allisonworldwide.com
FAQ
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