Hydrogen

Amazon signs green hydrogen supply deal with Plug Power

Amazon signs green hydrogen supply deal with Plug Power
An Amazon long-haul freight truck leaves a fulfillment center. (Courtesy: Amazon)

Amazon said it signed a green hydrogen supply deal with Plug Power as part of its effort to achieve net-zero carbon operations by 2050.

Using Plug Power’s electrolyzers, liquefaction capabilities, and cryogenic tankers, Plug will deliver green hydrogen to Amazon beginning Jan. 1, 2025. The liquified green hydrogen will be used to fuel Amazon's transportation and building operations, the companies said.

“Amazon is proud to be an early adopter of green hydrogen given its potential to decarbonize hard-to-abate sectors like long-haul trucking, steel manufacturing, aviation, and ocean shipping,” said Kara Hurst, vice president of worldwide sustainability at Amazon.

Check out a recent episode of the Factor This! podcast that examined the future of green hydrogen, featuring experts from Generate Capital, EDP Renewables, and the National Renewable Energy Laboratory. Subscribe today wherever you get your podcasts.

Since 2016, Plug Power has helped Amazon deploy more than 15,000 fuel cells to replace batteries in forklifts across 70 distribution centers.

The supply deal announced August 25 calls for Plug Power to provide 10,950 tons per year of liquid green hydrogen to Amazon.

Plug Power CEO Andy Marsh said his company is also working with Amazon to explore hydrogen applications for fuel-cell electric trucks and fuel-cell power generation stations that could provide electricity to Amazon buildings and the deployment of electrolyzers in fulfillment centers.

Alongside this deal, Plug granted Amazon a warrant to acquire up to 16 million shares of Plug's common stock. Amazon would vest the warrant in full if it spends $2.1 billion over the seven-year term of the warrant across Plug products, including, among other technologies, electrolyzers, fuel cells, and green hydrogen.

Plug Power is targeting 70 tons per day of green hydrogen production by the end of 2022. The company said it remains on track to produce 500 tons per day in North America by 2025, and 1,000 tons per day globally by 2028.

Amazon Wind Farm Texas (JORDAN STEAD / Amazon)

The Clean Energy Buyers Alliance ranked Amazon as the top corporate buyer of renewable energy in the U.S. in 2021, topping Meta, Verizon, Google, and Microsoft. In 2021, Amazon procured 2.85 GW of renewable energy.

In April, Amazon said it was adding 37 renewable energy projects totaling 3.5 GW of capacity to its global portfolio. Twenty-three of those projects are in the U.S., including what Amazon said is its single largest procurement ever. The 500 MW Amazon Solar Farm Texas - Frye in North Texas is expected to be operational in 2023.

The projects all support Amazon's goal of powering all of its operations with renewable energy by 2030, a milestone the company said it expects to reach by 2025. Amazon's renewable energy portfolio is on track grow from 12.2 GW to 15.7 GW with the recently announced projects.

Amazon now boasts 310 wind and solar projects across 19 countries.