By Sam Boughedda
Investing.com -- Plug Power Inc (NASDAQ:PLUG) said Monday it has agreed on a deal with Walmart Inc (NYSE:WMT) for an option to deliver up to 20 tons of liquid green hydrogen a day to power its material handling lift trucks across Walmart distribution centers.
The provider of hydrogen solutions has partnered with Walmart as the retailer incorporates its zero-carbon energy into its supply chain. According to Plug, the deal marks one of the company's first green hydrogen supply contracts.
Green hydrogen is said to only emit harmless oxygen and is seen as a clean, secure, and affordable energy solution as businesses transition. Plug said the liquid green hydrogen it delivers to Walmart will be used to fuel up to 9,500 lift trucks across Walmart distribution and fulfillment centers.
Walmart and Plug Power have worked together since 2012 to expand hydrogen fuel cells throughout Walmart facilities.
"Walmart has been an early adopter of innovative hydrogen and fuel cell technology for over a decade, and our hydrogen-powered solutions offer a tool to enhance productivity improvements for Walmart's operations," said Andy Marsh, CEO of Plug.
"Now our green hydrogen solutions will provide Walmart with the ability to achieve significant carbon reduction. We are honored to expand our relationship with Walmart and realize our shared vision for a green hydrogen future," Marsh added.
Plug aims to produce 70 TPD of green hydrogen production by the end of 2022 and 500 TPD production by 2025.
Plug shares gained 3.8% on Tuesday.