Plug Power, Amazon sign hydrogen deal

Nasdaq-listed Plug Power has signed a deal with Amazon to provide liquid green hydrogen starting in 2025, it said on August 25. Amazon has announced a commitment to be net-zero carbon by 2040.

According to the deal, Plug will supply 10,950 metric tons/year of liquid green hydrogen to fuel Amazon operations. Using Plug’s electrolyzers, liquefaction capabilities and cryogenic tankers, Plug will deliver hydrogen to Amazon beginning January 1, 2025.

Plug has granted Amazon a warrant to acquire up to 16mn shares of its common stock, of which the exercise price for the first 9mn warrant shares is $22.9841/share, and the exercise price for the remaining 7mn warrant shares will be an amount per share equal to 90% of the 30-day volume weighted average share price of Plug common stock.

Amazon would vest the warrant in full if it spends $2.1bn over the seven-year term of the warrant across Plug products, including, but not limited to, electrolyzers, fuel cell solutions, and green hydrogen, Plug said.

Plug is targeting 70 mt/day of green hydrogen production by the end of 2022. Plug said it remains on track to produce 500mt/day in North America by 2025, and 1,000 mt/day globally by 2028.