Plug Power installs first hydrogen-producing system at an Amazon fulfillment center

By Tomi Kilgore

Amazon had been getting hydrogen to fuel its forklifts trucked in but is now looking at on-site production

Plug Power Inc. said Wednesday that it has completed the first installation of an electrolyzer system at an Amazon.com Inc. fulfillment center, as the e-commerce giant looks to start producing hydrogen on-site, rather than getting it delivered.

The proton-exchange-membrane electrolyzer produces enough hydrogen to fuel more than 225 hydrogen-fuel-cell powered forklift trucks at the Aurora, Colo., site.

Plug Power's stock (PLUG) fell 1.3% in morning trading. That puts it on track to snap a three-day winning streak in which the stock surged 14.9%.

Plug Power said it has worked with Amazon to deploy more than 17,000 fuel cells to replace batteries in forklifts at more than 80 fulfillment centers. But at most locations, the hydrogen to power those forklifts is produced elsewhere and delivered by truck.

"On-site production will make the use of hydrogen even more energy efficient for certain locations and types of facilities," said Asad Jafry, director of global hydrogen economy at Amazon.

Plug said it uses surplus electricity, at locations that generate more renewable electricity than the site needs at a given time, 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," Plug said in a statement.

Plug's stock has charged up 16.8% so far in December, to snap a four-month losing streak in which it has plunged 69.2%.

So far this year, it has tumbled 61.8%, which would be the worst yearly performance since 2012, when it plummeted 75.5%.

Meanwhile, Amazon's stock has soared 82.9% this year, which would be the best yearly performance since it rocketed 117.8% in 2015. The S&P 500 SPX has gained 24.3% this year.

-Tomi Kilgore

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

12-27-23 1123ET

Copyright (c) 2023 Dow Jones & Company, Inc.