Following Amazon’s announcement that it had reached an agreement with Plug Power to use green hydrogen to power some of its activities, the company’s shares increased by 9% at the close.
According to Amazon, starting in 2025, Plug will provide 10,950 tonnes of green hydrogen annually for its building and transportation activities. Amazon anticipates that Plug will produce enough green hydrogen to run 800 long-haul trucks or 30,000 forklifts.
In exchange for the agreement, Plug claimed to have given the world’s largest online retailer a warrant to purchase up to 16 million shares at an exercise price of $22.9841 for the initial 9 million shares. For its warrants to completely vest, Amazon pledged to spend $2.1 billion on Plug products over the course of the seven-year contract.
Prior to the announcement, the retail behemoth has already been utilising Plug’s technology. Amazon obtained the opportunity to purchase up to 23% of Plug in 2017. At the time, Plug announced that it will provide Amazon with hydrogen fuel cells for forklifts to be installed on at a few of its facilities.