The move comes as Amazon seeks to increase the energy efficiency of its expansive network of warehouses. But it also signals a willingness by the company to invest in fuel technology on a more fundamental level.
New York-based Plug Power said it has struck a massive deal with Amazon.com to supply the e-commerce giant with hydrogen and fuel-cell technology to power its fulfillment centers.
The startup said the revenue from the deal will reach around $70 million this year, and could total $600 million over the life of the agreement.
The deal comes with an investment option. Plug Power said it gave Amazon the right to acquire about 55 million of its shares, slightly more than a fifth of the current total. The vesting of Amazon’s warrants depends on its purchases from Plug Power.
The move comes as Amazon seeks to increase the energy efficiency of its expansive network of warehouses. But it also signals a willingness by the Seattle e-commerce giant to invest in fuel technology on a more fundamental level.
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Plug Power shares skyrocketed after the announcement Wednesday, closing up 73 percent at $2.25.
Amazon said in a statement that the partnership will enable the industrial trucks in its fulfillment centers to charge more quickly, bringing down costs and increasing the energy efficiency of its operations.