In an effort to use less fossil fuel, Amazon.com Inc. committed to purchasing from Plug Power Inc. enough carbon-free hydrogen to power 30,000 forklifts or 800 long-haul vehicles yearly. Shares of Plug increased.
According to a statement released on Thursday, Plug will begin supplying the retail giant with around 11,000 tons of green hydrogen created from renewable energy each year in 2025. Shares of the firm increased by as high as 14.7%. In New York, they were up 7.8% at 10:39 a.m.For many years, Amazon has operated using Plug’s hydrogen-powered forklifts. However, Plug is currently making a shift to become a significant hydrogen provider, believing that the fuel will become essential in a low-carbon future. The Latham, New York-based business and Walmart agreed to a similar supply deal in April.
By utilizing solar or wind power to run an electrolyzer, which separates water into hydrogen and oxygen without releasing greenhouse gases, green hydrogen may be produced. To prevent the worst impacts of climate change, such emissions must be reduced. Amazon has promised to reduce its own emissions and support programs that protect forests and other natural resources in order to offset any greenhouse gas emissions that it is unable to completely eradicate by the year 2040. The corporation, which has just become the largest corporate consumer of renewable energy, has committed to, among other things, replacing its fleet of last-mile package delivery trucks with electric cars and reducing waste.
Amazon received the opportunity to purchase 16 million Plug shares as part of the arrangement. Such warrants are frequently acquired by Amazon in agreements with suppliers in an effort to share in the financial benefits that doing business with one of the most well-known firms in the nation may offer. If Amazon spends $2.1 billion on Plug Power goods over a seven-year period, the share immediately vests. In 2019, Amazon made its climate ambitions public. Since then, its greenhouse gas emissions have increased by almost 40%.
