Amazon To Buy Plug Power’s ‘Green’ Hydrogen In Deal With $2.1 Billion Stock Option

Plug Power, which supplies fuel cells for electric forklifts used by Amazon and other companies, said the retail giant plans to buy thousands of tons of carbon-free "green" hydrogen from it per year, in a deal that also includes an option to acquire a stake in the company worth up to

Plug will provide Amazon with 10,950 tons of liquified hydrogen per year starting in 2025. The company expects to hit an annual revenue target of $3 billion as a result of the deal.

Plug Power's CEO says it's a huge deal for thehydrogen industry. He said that Amazon may use hydrogen to power a range of vehicles used in delivery operations. It is the first large-scale hydrogenecosystem for Amazon where they are thinking about all the applications they can use hydrogen in

Hydrogen is expected to be a major source of electric power, along with batteries and stationary power generation and storage, as well as an option for stationary power generation and storage Industrial hydrogen that is used for oil refining, food processing and the chemical industry is currently made using a method that emits carbon dioxide. Plug, Cummins, Nikola, and many others are moving to a new technique that can make a "green" form of the fuel from electricity and water that doesn't harm the environment.

A production tax credit for green hydrogen worth $3 per kilogram of carbon-free fuel is included in the new Inflation Reduction Act signed into law this month.

Plug has sold Amazon fuel cells for its warehouse forklifts since 2016 and estimates it has provided more than 15,000 units to date. The company wants to increase its hydrogen fuel supply business. Plug will be able to make 500 tons of green hydrogen per day at its facilities in North America by the year 2025. It wants to produce 1,000 tons of hydrogen a day by the year 2000.

The deal is part of the company's effort to achieve net-zero carbon emissions by the year 2040. Through the agreement with Plug Power, Amazon believes it will be able to scale the supply and demand for green hydrogen.

Plug granted Amazon warrants to acquire up to 16 million shares with an exercise price of $22.98 for the first 9 million. It vests in full after Amazon spends more than $2 billion on Plug products over the course of seven years.

Plug Power's shares rose 9% on Thursday.