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Amazon.com Inc. agreed to buy enough carbon-free hydrogen from Plug Power Inc. to run 30,000 forklifts or 800 longhaul trucks annually in a push to use less fossil fuels and decarbonize its operations. Plug’s shares surged.
Plug will sell the logistics giant almost 11,000 tons of so-called green hydrogen per year starting in 2025, according to a statement Aug. 25. The company’s shares rose as much as 14.7%. They were up 8.8% at 10:10 a.m. in New York.
Green hydrogen is produced using renewable power such as wind or solar to run a device called an electrolyzer, which splits water into hydrogen and oxygen without emitting greenhouse gases. Reducing those emissions is necessary to avoid the worst effects of global climate change.
Amazon has pledged to become a “net zero” emitter of carbon by 2040, including by reducing its own emissions and backing forest preservation and other projects that offset any greenhouse gases it’s unable to eliminate. The company, the largest buyer of renewable power in recent years, has pledged to equip its last-mile package delivery fleet with electric vehicles and reduce waste, among other projects.
The company announced its climate goals in 2019. Its greenhouse gas emissions are up roughly 40% since then.
Amazon ranks No. 22 on the Transport Topics Top 100 list of the largest private carriers in North America.
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