Boston, MA 03/03/2014 (wallstreetpr) – Plug Power Inc (NASDAQ:PLUG) got a boost as Walmart increased investment in hydrogen fuel cells, which accounted for its single biggest order until now.
In order to get rid of dirty battery and other fueling options, Walmart has significantly increased investment hydrogen fuel cells which in turn was a high boost for supplier Plug Power. The world’s biggest retailer has ordered its supplier to deliver as many as 1,738 new cells. This figure totals around 40% of Plug Power’s entire existing installed base which has around 4,500 units. The order fetched the company its biggest bulk order till date. Walmart is already using as many as one-third the total numbers of cells it has currently ordered in two refrigerated distributions centes.
Initiation In Q2 Of 2014
Wal-Mart Stores, Inc. (NYSE:WMT) is planning to employ the new lot of GenDrive cells in electric lifts which are used to shuttle products around six distribution centers in North America. According to Walmart and Plug Power Inc (NASDAQ:PLUG), the installations will be initiated in the second quarter of 2014 and may take up to two years to complete.
Plug Power had already shared the news of the bulk order earlier in the month but had not disclosed the name of the buyer until this week. Apart from investing in the company’s cells, Wal-Mart Stores, Inc. (NYSE:WMT) will also purchase GenFuel infrastructure so as to keep the units operative. It is offering a six year service contract for each site.
The Technology
Hydrogen fuel cells covert hydrogen and oxygen into electricity, on which principle they are built. Until now, their adoption was limited by the lack of fueling infrastructure. Plug Power Inc (NASDAQ:PLUG)’s cells are characteristically used for materials managing fleets in warehouses or distribution centers. The application for the technology is rapidly expanding.
Soon after the announcement, Plug Power Inc (NASDAQ:PLUG)’s stock rose 15% up to $4.47 on Feb 26. Over a period of 12 months, its shares have risen 700%.
