Amazon.com Inc. agreed to buy enough carbon-free hydrogen from Plug Power Inc. to run 30,000 forklifts or 800 long-haul trucks annually in a push to use less fossil fuel. Plug’s shares surged.
Plug will supply the retail giant with almost 11,000 tons of green hydrogen, which is produced with renewable energy, annually starting in 2025, according to a statement Thursday. The company’s shares rose as much as 14.7%. They were up 7.8% at 10:39 a.m. in New York.
Amazon has long used Plug’s hydrogen-powered forklifts in its operations. But Plug is now pivoting to become a major supplier of hydrogen itself, betting that the fuel will become crucial in a low-carbon future. The company, based in Latham, New York, signed a similar supply agreement with Walmart in April.
Green hydrogen is made using wind or solar energy to power a device called an electrolyzer, which splits water into hydrogen and oxygen without emitting greenhouse gases. Reducing those emissions is necessary to avoid the worst effects of global climate change.
