Internet retailer Amazon.com has committed to deploy forklifts powered by hydrogen fuel cells from Plug Power Inc. at some of its fulfillment centers and will work with the Latham, N.Y.-based company to develop new applications for hydrogen fuel systems.
Amazon will spend about $70 million to deploy Plug Power’s ProGen modular fuel cell engines for forklifts in 2017. It also was granted warrants to acquire up to 55.3 million shares of Plug Power stock at $1.1893 per share if Amazon makes aggregate payments of $600 million for future purchase of goods and services from Plug Power.
“This agreement is a tremendous opportunity for Plug Power to further innovate and grow while helping to support the work Amazon does to pick, pack and ship customer orders,” Plug Power CEO Andy Marsh said in a statement April 5.
He added that the companies will work together to develop hydrogen fuel cell technology, which could have applications for use in on-road electric vehicles, including parcel delivery and service trucks, municipal and government fleets, taxis and port vehicles.
More than 6,000 ProGen engines are in service, according to Plug Power officials. Among the company’s customers is Amazon’s online rival, Wal-Mart Stores Inc.
