Fuel Cell Market to observe phenomenal gains with the strategic partnership of Plug Power, Inc. and Amazon, high demand for GenKey-powered equipment to fuel industry growth
Category: #world  By Saipriya Iyer  Date: 2017-04-10
  • share
  • Twitter
  • Facebook
  • LinkedIn

Fuel Cell Market to observe phenomenal gains with the strategic partnership of Plug Power, Inc. and Amazon, high demand for GenKey-powered equipment to fuel industry growth

Global fuel cell market is likely to grow at a remarkable pace with the recent collaboration between online retailer giant, Amazon, and fuel cell industry magnate Plug power Inc. The agreement has reportedly helped plummet the latter’s stock prices to an all-time high – the price range observed an increase from USD 1.28 to USD 2.25. This alliance marks the beginning of a groundbreaking era in the fuel cell market, the growth of which had been a little cooler since the last couple of years. Back in 2014, hydrogen fuel cell technology was anticipated to be deployed in hybrid vehicles, forklifts, and electric vehicles to reduce carbon footprints. The integration of this technology in vehicles, reportedly, had failed to generate the expected response, leading to only a modest growth in fuel cell industry. With the aforementioned deal, however, the slight market slump is expected to gain renewed traction, state experts.

This is not the first time that Plug Power has been involved in a lucrative partnership. In 2015, Plug Power acquired complete control of HyPulsion, with an aim to provide its GenDrive products to European lift truck customers, thus incorporating hydrogen fuel cell technology in the billion dollar Europe electric Lift truck market. This in turn, propelled Europe hydrogen and fuel cell market as well.

In 2016, Plug Power revealed that it had plans of acquiring a European industrial gas company and using their technology to produce industrial gas supplies, with a view to expanding their presence in global hydrogen and fuel cell industry. The deal price was affirmed to be more than USD 10 million, as per reliable reports.

Undoubtedly though, this recent partnership between Amazon and Plug Power has been the most profitable one so far for this fuel cell market giant. This agreement legally allows Amazon to buy up 23% of Plug’s share, with an approximate price of more than USD 1.15 per share. Plug’s hydrogen fuel cells powered with its patent GenKey technology will be integrated in Amazon’s forklifts to lift goods easily and at reduce costs. As of 2017, the retailer giant is likely to invest around USD 70 million in the deal, which is expected to increase twice by the next year.

Amazon will utilize Plug’s GenKey-mechanized industrial equipment at all its fulfillment centers, thereby maintaining the latter’s position at the top in global fuel cell market. In addition, the two conglomerates will continue to work on technology innovations to explore further avenues for Plug’s ProGen fuel cell engines in the future. This deal is also anticipated to prompt other industry competitors to adopt this technology for their patented equipment. As per sources, Power Plug is the only player so far in fuel cell industry that has integrated forklifts with fuel cells to obtain high efficiency. This technology is also being used by Walmart Inc. in most of their warehouses.

Plug Power is an established, trusted brand that has already revolutionized fuel cell market via its range of hydrogen technology solutions such as GenKey, GenDrive, and GenCare aftermarket services. This agreement has provided an opportunity for Power Plug to innovate novel technologies and diversify their product and service portfolio. The company has also declared that they will continue to undertake such strategic collaborations in future to rapidly expand their global presence in hydrogen technology and fuel cell industry.



About Author

Saipriya Iyer

Email: [email protected]   

Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

Read More

More News By Saipriya Iyer

Vela Diagnostics gains EUA for ViroKey™ SARS-CoV-2 RT-PCR test v2.0
Vela Diagnostics gains EUA for ViroKey™ SARS-CoV-2 RT-PCR test v2.0
By Saipriya Iyer

Vela Diagnostics has recently announced that the U.S. FDA has granted an EUA (Emergency Use Authorization) for its ViroKey™ SARS-CoV-2 RT-PCR Test v2.0 in the United States. This automated p...

Foodics enters Egypt market by setting an on-ground presence in Cairo
Foodics enters Egypt market by setting an on-ground presence in Cairo
By Saipriya Iyer

Saudi Arabia-based restaurant management platform Foodics, has announced that it has entered the Egyptian market by creating an on-the-ground presence in Cairo.  The expansion comes after the company raised USD 4 ...

Food Emulsifiers Market to Witness an Appreciable Growth By 2026
Food Emulsifiers Market to Witness an Appreciable Growth By 2026
By Saipriya Iyer

This advanced report on the Food Emulsifiers Market includes of an in-depth overview of this business sphere. Alongside, details of the present market size and status have been given. The report aims to provide substantial updates on the market, p...