Plug Power Completes First Installation of Electrolyzer at Amazon Fulfillment Center
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Insights
The installation of a one-megawatt electrolyzer system by Plug Power Inc. at an Amazon fulfillment center in Colorado represents a significant step towards sustainable business operations. The use of on-site hydrogen production for powering material handling equipment such as forklifts aligns with broader trends in corporate sustainability and emissions reduction. This initiative is a practical example of how companies are integrating green technologies into their supply chain to reduce their carbon footprint.
From a sustainability perspective, the shift from conventional battery-powered forklifts to hydrogen fuel cell-powered alternatives offers a dual benefit. Firstly, it reduces reliance on fossil fuels and secondly, it enhances operational efficiency by eliminating the need for lengthy battery recharging times. This on-site production model also circumvents the emissions associated with the liquification and transportation of hydrogen, thereby offering a more carbon-neutral solution.
For stakeholders, this development is indicative of Amazon's commitment to The Climate Pledge and its goal of achieving net-zero carbon emissions by 2040. For Plug Power, it showcases their capability to provide end-to-end hydrogen solutions and could potentially lead to further collaborations with Amazon and other companies pursuing similar sustainability goals.
Plug Power's deployment of an electrolyzer system has implications for the industrial hydrogen market, potentially influencing the adoption rate of hydrogen technologies in various sectors. This partnership with Amazon demonstrates the viability of hydrogen fuel cells in large-scale logistics operations, a segment traditionally dominated by electric and diesel-powered equipment.
By producing hydrogen on-site, Amazon is likely to experience operational cost savings over time, as it mitigates the need for external hydrogen sourcing and the associated logistical complexities. This move could set a precedent for other companies, leading to increased demand for electrolyzer systems and hydrogen infrastructure. As a result, Plug Power and competitors in the space may see a rise in business opportunities.
However, it's important to note that the success of such initiatives depends on the availability and cost of renewable electricity, as well as advancements in electrolyzer efficiency. The long-term impact on the stock market is contingent upon the scalability of this technology and the broader market's reception to hydrogen as a viable alternative to traditional energy sources.
Plug Power's collaboration with Amazon could serve as a catalyst for investor confidence in the hydrogen and fuel cell sector. The implementation of a one-megawatt electrolyzer system at a high-profile Amazon fulfillment center is a tangible demonstration of Plug Power's capabilities, potentially leading to positive investor sentiment.
Financially, the move towards on-site hydrogen production can be seen as a strategic investment that may result in lower operational costs for Amazon due to reduced fuel transportation and storage expenses. For Plug Power, the success of this project could lead to an increase in similar contracts, thereby bolstering its revenue streams. Moreover, this project's alignment with environmental, social and governance (ESG) criteria could attract ESG-focused investors and funds, further supporting the company's valuation.
In the long-term, the scalability of such projects and the potential for replication across Amazon's global network of fulfillment centers could have a substantial impact on Plug Power's financial performance. It's crucial for investors to monitor subsequent developments and the broader adoption of hydrogen technologies to assess the enduring financial implications of this initiative.
Hydrogen generated on site in Colorado will power forklift trucks and help lower emissions
LATHAM, N.Y., Dec. 27, 2023 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, completed the installation and commissioning of an electrolyzer system at an Amazon fulfillment center in Aurora, Colorado. The one-megawatt (MW) proton exchange membrane electrolyzer is the first for Amazon and is producing low-carbon hydrogen to fuel more than 225 hydrogen fuel cell-powered forklift trucks at the site, known as DEN8.
The Plug 1MW electrolyzer, which uses electricity and water to produce hydrogen, is able to support up to 400 hydrogen fuel cell-powered forklift trucks. The hydrogen produced by the electrolyzer will be compressed on site and stored in a gaseous hydrogen storage tank for use by the forklift trucks.
“In Amazon, we have a true partner that recognizes the essential role hydrogen plays in our collective energy future,” said Plug CEO Andy Marsh. “This project demonstrates Plug’s ability to execute across the full hydrogen value chain, and shows how we can design and implement end-to-end solutions for our customers.”
To date, Plug has collaborated with Amazon to deploy more than 17,000 fuel cells to replace batteries in forklifts in more than 80 fulfillment centers in North America. For most of these locations, hydrogen to power the forklifts is produced elsewhere, liquified, and delivered by trucks to an on-site storage and dispensing system.
Plug recognized an opportunity—particularly in locations where more renewable electricity is generated than the site needs at a given time—to use that surplus electricity to produce and store hydrogen on site. This model also avoids the emissions typically generated in liquifying and transporting hydrogen from one site to another.
“Hydrogen is an important tool in our efforts to decarbonize our operations by 2040 in support of The Climate Pledge, and we’re excited about our ability to produce hydrogen at Amazon facilities through this partnership with Plug,” said Asad Jafry, the director of global hydrogen economy at Amazon. “On-site production will make the use of hydrogen even more energy efficient for certain locations and types of facilities.”
For this project, Plug provided design, installation, commissioning, and maintenance services for the 1MW PEM electrolyzer and hydrogen storage—compatible with the existing refueling infrastructure and fuel cells already in use at the site. This is the first electrolyzer system installed and in use at an Amazon site.
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 build and operate a green hydrogen highway across North America and Europe, Plug is operating a state-of-the-art Gigafactory to produce electrolyzers and fuel cells, and is developing multiple green hydrogen production plants targeting 500 tons of liquid green hydrogen daily by year end 2025. Plug will deliver 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
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: the 1MW electrolyzer being used to produce low-carbon hydrogen to fuel more than 225 hydrogen fuel cell-powered forklift trucks at Amazon’s site; Plug’s 1MW electrolyzer being able to support up to 400 hydrogen fuel cell-powered forklift trucks; the hydrogen being produced by the electrolyzer being compressed on Amazon’s site and stored in a gaseous hydrogen storage tank; and Plug’s ability to execute across the full hydrogen value chain and showing its ability to design and implement end-to-end solutions for its customers. 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
plugPR@allisonworldwide.com
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