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Latham, New York-based Plug Power was valued at $319 million as
of Tuesday's market close. Amazon must spend at least $600
million over the life of its contract with Plug Power for its
warrants to fully vest.
The world's largest online retailer will equip forklifts at 11
warehouses this year with hydrogen fuel cells so they can lift
more goods before running out of juice, as well as charge
faster, Plug Power's Chief Executive Andy Marsh said in an
interview. Amazon will spend $70 million on the deal in 2017 and
likely twice that next year, he said.
"Fulfillment centers are traditionally fairly low tech," said
Marsh, explaining that labor as well as physical space could be
freed up by moving away from batteries requiring lots of
attention.
While only a tiny fraction of forklifts globally are powered by
hydrogen fuel, Wal-Mart Stores Inc <WMT.N> already uses Plug
Power's technology in its warehouses and is a top customer,
according to Marsh.
The retailer is locked in a fight with Amazon for share of U.S.
shoppers' wallets.
(Reporting By Jeffrey Dastin in San Francisco; Editing by Randy
Fabi)
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