Plug Power And Amazon Sign Agreement On Green Hydrogen - Plug Share Price Rises
Latham, USA - The fuel cell and hydrogen sector is developing with growing momentum around the world. Plug Power has now announced that Amazon, a major player, is further expanding its involvement in the hydrogen segment and will purchase large quantities of green hydrogen from the RENIXX group in the future. Amazon is driving its decarbonisation strategy with the deal. The goal is to become CO2-neutral in all areas of the group by 2040. Plug Power's stock is climbing.
Amazon will receive around 11,000 tonnes of green hydrogen annually from 2025 onwards
Online shipping giant Amazon and fuel cell and hydrogen company Plug-Power have signed a contract to supply Amazon with 10,950 tonnes of green liquid hydrogen per year. Plug Power will supply the green hydrogen produced at its own facilities to Amazon from 1 January 2025. The hydrogen agreement expands Plug Power's and Amazon's existing hydrogen collaboration beyond the supply of products.
Plug Power has also granted Amazon a warrant to purchase up to 16 million Plug Power shares (warrant shares), with an exercise price of approximately US$23 for the first 9 million shares. Amazon could exercise the warrant in full if it spends $2.1 billion on Plug Power products during the seven-year term of the warrant.
The deal with Amazon will help Plug Power reach its sales target of $3 billion in 2025. In addition, Plug Power believes the contract validates its strategy to build a comprehensive green hydrogen ecosystem and provide integrated hydrogen solutions for its global customers.
"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", said Plug Power CEO Andy Marsh.
Plug Power is building extensive capacity to produce hydrogen
To keep pace with the growing demand for green hydrogen from Amazon and other customers, Plug is aiming to produce 70 tonnes of green hydrogen per day by the end of 2022. In addition, Plug Power sees itself on track to produce 500 tonnes per day in North America by 2025 and 1,000 tonnes per day globally by 2028, expanding opportunities for further collaboration with potential customers, including Amazon, Plug Power said.
Plug Power is currently building a comprehensive green hydrogen ecosystem, from production to storage, delivery and power generation. With plans to build and operate a green hydrogen highway across North America and Europe, Plug is building a state-of-the-art gigafactory to manufacture electrolyzers and fuel cells, as well as multiple green hydrogen production facilities.
Plug Power share price rises
Plug Power's share price takes the lead in yesterday's trading on the RENIXX and exits the trading session with a daily gain of 8.6 percent to 30.06 euros (25.08.2022, closing price, Stuttgart Stock Exchange). In today's trading, the RENIXX Group share is taking a breather. The share price is currently trading with a slight minus of 1.0 percent at 29.77 euros (2:26 p.m, 26.08.2022, Stuttgart Stock Exchange). Compared to the share price at the turn of the year, Plug Power is up around 22 per cent.
Source: IWR Online, 26 Aug 2022