Plug Power, the Nasdaq-listed hydrogen tech outfit linked to Australian billionaire Andrew Forrest’s plans to build an electrolyser “gigafactory” facility in Queensland, has inked a supply deal with online retail giant Amazon.
Plug Power says the new deal will see it provide liquid green hydrogen starting in 2025, to help Amazon decarbonise its operations in line with its commitment to be net-zero carbon by 2040.
The US based company says the potentially multi-billion dollar deal is part of its strategy to build an end-to-end green hydrogen ecosystem and provide integrated hydrogen solutions for its global customers.
The deal calls for the supply of 10,950 tonnes a year of liquid green hydrogen to fuel Amazon operations, using electrolysers, liquefaction capabilities and cryogenic tankers.
As part of this, Plug has granted Amazon a warrant to acquire up to 16,000,000 shares of Plug ‘s common stock. Amazon will vest the warrant in full if it spends $US2.1 billion over the seven-year term of the deal across Plug products.
“Landing a green hydrogen supply deal with a customer like Amazon validates our multi-year investment and strategic expansion into green hydrogen,” said Plug Power CEO Andy Marsh.
“We are excited to expand our relationship with Amazon in exploring the use of other hydrogen applications, such as fuel-cell electric trucks and fuel-cell power generation stations that could provide electricity to Amazon buildings and the deployment of electrolysers in fulfillment centers.”
For Amazon, the green hydrogen supply deal builds on its joint efforts with Plug to expand the applications of green hydrogen. Since 2016, Plug has helped Amazon deploy more than 15,000 fuel cells to replace batteries in forklifts across 70 distribution centers.
“Amazon is proud to be an early adopter of green hydrogen given its potential to decarbonise hard-to-abate sectors like long-haul trucking, steel manufacturing, aviation, and ocean shipping,” said Amazon vice president of worldwide sustainability, Kara Hurst.
“We are relentless in our pursuit to meet our Climate Pledge commitment to be net-zero carbon across our operations by 2040, and believe that scaling the supply and demand for green hydrogen, such as through this agreement with Plug Power, will play a key role in helping us achieve our goals.”
In Australia, Plug Power and Andrew Forrest’s Fortescue Future Industries last year signed a letter of intent to create a 50-50 joint venture to build a manufacturing facility in Queensland that would produce 2GW a year of hydrogen electrolysers, with potential expansion into fuel cells and refuelling and storage infrastructure.
The massive factory near Gladstone, located in the heart of the state’s coal and gas industry, is being proposed by Forrest as part of his massive – but as yet unrealised – push into green energy, and also includes plans to also build wind turbines and solar PV cells.
