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Amazon To Incorporate Hydrogen Fuel Cells In Warehouses

The world's largest e-retailer reached an agreement to use fuel cell technology in forklifts and other warehouse equipment.

Amazon plans to deploy millions in hydrogen fuel cell technology in its warehouse equipment and logistics operations.

The world's largest e-retailer reached an agreement with Plug Power to use the New York fuel cell company's GenKey technology in forklifts and other vehicles at select warehouses. The deal is expected to generate $70 million in revenue for Plug Power this year.

Fuel cells combine hydrogen fuel with oxygen in the air to generate power without emissions — the systems' only exhaust is water vapor. Plug Power officials said that GenKey, in particular, allows for faster charging, lower costs and improved energy efficiency.

Amazon also received warrants to purchase shares of Plug Power — provided it purchases a total of $600 million from the company — and the companies will collaborate on the development of additional hydrogen fuel systems. The pact could eventually create additional applications for Plug Power's ProGen fuel cell engines

"This agreement is a tremendous opportunity for Plug Power to further innovate and grow while helping to support the work Amazon does to pick, pack and ship customer orders," Plug Power CEO Andy Marsh said in a statement.

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