Plug Power stock was surging Tuesday after the hydrogen fuel cell company announced a delivery agreement with Walmart.
Under the agreement, Plug Power (ticker: PLUG) has an option to deliver up to 20 tons per day of liquid green hydrogen to power the retail giant's material handling lift trucks across its distribution and fulfillment centers in the U.S.
Walmart (WMT) has partnered with Plug Power since 2012, when it launched a 50-fleet fuel cell pilot. That has then expanded to a fleet of 9,500 plus, the company said.
"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, Plug Power CEO.
This is one of the first green hydrogen supply contracts for Plug Power. Green hydrogen is produced through the electrolysis of water with electricity generated from zero-carbon sources. Plug will deliver the green hydrogen using a fleet of liquid transport using capabilities from its recent acquisition of Applied Cryo Technologies, the companies said.
Plug Power was rising 5.8% to $27.00 on Tuesday. The stock has lost about 4.2% this year. Walmart was up 0.8% to $157.12.
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Plug Power Stock Rises on Agreement to Supply Green Hydrogen to Walmart
Credit: By Sabrina Escobar