Amazon.com, Inc (NASDAQ: AMZN) has signed a deal with hydrogen fuel cell manufacturer Plug Power Inc (NASDAQ: PLUG) to employ green hydrogen in powering part of its activities.
Amazon to receive 10,950 tons of green hydrogen
According to Amazon, from 2025, Plug Power will provide 10,950 tonnes of green hydrogen annually for its construction and transportation activities. In addition, Amazon anticipates that Plug will produce sufficient renewable hydrogen to run 800 long-haul vehicles or 30,000 forklifts. In exchange for the agreement, Plug claimed to have given the world’s largest online retailer a warrant to purchase around 16 common shares at a par value of $22.9841, mainly for the initial 9 million units. Also, Amazon will, over the seven years of the contract, spend around $2.1 billion on Plug Power products.
Because burning hydrogen produces no greenhouse emissions, it has potential value in the fight against global warming. However, hydrogen must first be created, which uses energy. Electrolysis which is a process that separates water into oxygen and hydrogen using an electric charge, is the main way of producing hydrogen. Whenever the process is powered by alternative energy sources like wind or solar, eco-friendly hydrogen is created.
Experts have a contrary opinion on the issue of stopping climate change
Experts continue to disagree on whether it is successful in halting climate change, and some think it is neither effective nor environmentally friendly enough. Instead, they argue that it would be better to use clean power directly whenever it’s accessible and depend on other forms of energy when it is not. Today, a large portion of hydrogen production is known as “gray” hydrogen, which is produced by fossil fuel burning like natural gas or coal.
As a result of the deal, Amazon will begin using clean hydrogen instead of gray hydrogen, petrol, and other dirty energy, advancing its sustainability objectives. Using technology like hydrogen cells, Amazon revealed that it aims to use sustainable hydrogen in operations beyond merely powering forklifts. More commercially available hydrogen-powered machinery is required to achieve this.
