Plug Power, the leading provider of hydrogen fuel cell solutions, has successfully installed its first system at an Amazon.com fulfillment center in Aurora, Colo. The system includes an electrolyzer that produces low-carbon hydrogen, which will power over 225 forklift trucks at the site. This milestone project highlights Plug Power’s expertise in executing end-to-end hydrogen solutions for its customers.
According to Plug CEO Andy Marsh, this accomplishment showcases the company’s ability to navigate the entire hydrogen value chain. By designing and implementing comprehensive solutions, Plug Power aims to address the unique needs of its customers effectively. With more than 17,000 fuel cells already deployed to replace batteries in forklifts across more than 80 Amazon fulfillment centers in North America, Plug continues to make significant strides in the industry.
While Plug stock experienced a slight increase of 0.4% to $4.81 in Wednesday trading, it has remained underperforming this year, with a 61% decline. However, RBC Capital Markets analyst Chris Dendrinos believes that the collaboration between Plug Power and Amazon signifies a crucial turning point. Dendrinos emphasizes that this project demonstrates Plug’s potential to decentralize hydrogen production and overcome associated challenges, costs, and emissions typically associated with conventional hub and spoke distribution models.
Looking forward, Plug anticipates further installations in 2024 for customers in the United States and Europe. This groundbreaking partnership with Amazon serves as an essential stepping stone for Plug Power’s expansion into new markets. As a result, RBC Capital Markets rates Plug stock at Sector Perform, with a $5 price target.