Plug Power announced good news boosting its green hydrogen distribution. The company signed a delivery agreement with Walmart for an option of up to 20 tons per day of liquid green hydrogen to power material handling lift trucks across Walmart distribution and fulfillment centers in the US.
This delivery contract is an important milestone for Plug as it is one of its first green hydrogen supply contracts, validating the company’s long-term investment plan to expand the green hydrogen economy.
Plug Power has been supplying Walmart with hydrogen fuel cell tech since 2012 when it launched a 50-fleet fuel cell pilot. Since then, the cooperation has expanded to a fleet of more than 9,500 as Plug’s hydrogen-powered solutions offer a tool for Walmart to enhance productivity in its operations.
“Walmart has been an early adopter of innovative hydrogen and fuel cell technology for over a decade… Now our green hydrogen solutions will provide Walmart with the ability to achieve significant carbon reduction. We are honored to expand our relationship with Walmart and realize our shared vision for a green hydrogen future,” said Andy Marsh, CEO of Plug.
Plug’s intentions to green the economy coincide with Walmart’s goal to decarbonize its operations by incorporating the use of green hydrogen throughout its facilities. According to the retailer, fuel cell lift trucks provide operations that are efficient, clean, quiet, and most importantly, more sustainable.
The deal for delivering 20 tons per day of green hydrogen adds up to Plug’s target of providing 1000 tons per day of the green fuel globally by 2028.
The company’s vision for green hydrogen includes a network of production facilities, transport capabilities, and charging stations across the globe to meet the demand for decarbonization of the economy and address the urgent challenge of climate change.
Plug made another announcement on Tuesday – it unveiled a new brand identity that confirms its long-term goal of bringing the advantages of the green hydrogen value chain to customers and people everywhere.
Plug Power stock reacted to the Walmart news. Initially, it jumped 12% to $28.29 on Tuesday, April 19th but currently it’s experiencing some bearish pressure dropping 5% on Thursday. Plug Power stock is still 10% down YTD but recent hydrogen developments like the Walmart deal may start to lift optimism. The stock also looks attractive at current dips.