Amazon contracts Plug Power to supply green hydrogenAugust 29, 2022
The renewable liquid H2 will be used by the online marketplace to fuel its thousands of forklifts.
Plug Power Inc. has announced the signing of a new deal with Amazon.com Inc. for the supply of liquid green hydrogen to the online marketplace giant.
The companies jointly revealed the deal formed between them to supply renewable H2.
Amazon stated that Plug Power is going to provide it with 10,950 tons of renewable H2 per year beginning in 2025. The goal is to use it as a replacement for gray H2, diesel and other forms of fossil fuel. At the time of the initial announcement, neither company disclosed any of the details regarding the supply pricing for the H2.
Green hydrogen is often viewed as a primary component of clean energy’s future. The reason is that it is produced using electrolyzers powered by renewable electricity. This means that it generates greenhouse gas emissions neither when it is produced nor when it is used as an energy source. This clean fuel source is also flexible and can be used for everything from transportation applications to electricity generation
The green hydrogen will eliminate the carbon emissions from gray hydrogen which uses natural gas.
Gray H2 is produced using natural gas, a fossil fuel, without carbon capture and storage. It represents the majority of the H2 production per year – around 90 million tons annually.
The new agreement between the companies will provide adequate H2 to power about 30,000 forklifts or 800 heavy-duty trucks, according to Amazon. The largest retailer in the world also stated that it already uses H2 to power more than 15,000 forklifts powered by forklifts and intends to raise that number to 20,000 units by the end of 2025.
Amazon has also placed an order with Rivian Automotive Inc. for an additional 100,000 electric delivery vehicles.
Plug Power added that its green hydrogen deal with Amazon will provide it will growth toward its intention to achieve $3 billion in revenue by 2025. It went on to add that it has provided Amazon with a warrant to purchase up to 16 million of its shares at a $22.9841 per unit exercise price for the first 9 million shares. Amazon can vest the warrant in full if it spends $2.1 billion in Plug products throughout the length of the seven-year agreement.