Plug Power Inc (NASDAQ: PLUG) shares are trading higher Thursday after the company announced it signed a hydrogen supply deal with Amazon.com Inc (NASDAQ: NASDAQ:AMZN).
Plug Power has reached an agreement with Amazon to provide liquid green hydrogen to help decarbonize Amazon's operations as part of its commitment to be net-zero carbon by 2040.
Beginning in 2025, Plug is set to supply 10,950 tons per year of liquid green hydrogen to fuel Amazon operations. Plug said the deal is expected to help the company reach its goal of $3 billion in revenue in 2025.
"Landing a green hydrogen supply deal with a customer like Amazon validates our multi-year investment and strategic expansion into green hydrogen. 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 electrolyzers in fulfillment centers," said Andy Marsh, CEO of Plug Power.
Since 2016, Plug has helped Amazon to deploy more than 15,000 fuel cells to replace batteries in forklifts across 70 distribution centers.
The green hydrogen company has granted Amazon a warrant to acquire up to 16 million shares of Plug, with an exercise price of $22.9841 per share for the first 9 million warrant shares. The remaining 7 million warrant shares will have an exercise price equal to 90% of the 30-day volume weighted average share price of Plug as of the final vesting event.
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PLUG Price Action: Plug Power has a 52-week high of $32.05 and a 52-week low of $12.70.
The stock was up 9.16% at $30.04 at press time, according to Benzinga Pro.
Photo: courtesy of Plug Power.
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