Plug Power Inc. (PLUG - Free Report) announced that it has entered into an agreement with Lipari Foods to strengthen its expanding customer base. Plug Power will supply GenDrive fuel cells and provide GenFuel hydrogen fueling station solutions to power electric material handling vehicles at the Lipari Foods campus in Warren, MI.
Via this agreement, Lipari Foods expands Plug Power’s illustrious customer base that includes Amazon.com (AMZN - Free Report) and Walmart Inc. (WMT - Free Report) , among others. Plug Power’s zero-emission hydrogen fuel cells (HFCs) are admired by its clients for their ability to easily scale, maximize the utilization of equipment and increase productivity of its operators.
How GenDrive Fuel Cells Help Lipari Foods?
Lipari Foods continues to expand business. Furthermore, the requirement of energy is expanding. To date, Lipari Foods had to load up all their pallet jackets on twelve 53-foot trailers and ship these to another warehouse to charge every day. However, the fast-fueling characteristic of Plug Power’s space-efficient HFCs allows Lipari Foods to double the usage of its material handling fleet. Additionally, Lipari Foods will no longer incur the additional cost for charging.
Rising Usage of Electric Vehicles
IDTechEx Market Research predicts that the global electric vehicle (EV) market is expected to touch nearly $350 billion by 2025. Plug Power is poised to gain from the rising demand for electric vehicles as its GenDrive fuel cells are highly adaptable across a range of energy needs from different types of vehicles. Its capabilities in system integration, service support and fueling solutions will allow it to expand services in the EV market.
Popularity of Fuel Cells is Increasing
The ability of fuel cells to produce energy from hydrogen without creating pollution is driving its demand. Fuel Cell technology is witnessing higher adoption in trains, trams, transit buses, commercial trucks and marine vessels. Per REASERCH AND MARKETS, the fuel cell market is expected to reach $13.83 billion by 2023 from $3.114 billion in 2017. The rising demand for fuel cell will create more opportunity for other operators in the same space like Ballard Power Systems (BLDP - Free Report) , which recently signed an agreement to supply modules to Norway.
Zacks Rank & Price Movement
Plug Power currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Plug Power has outperformed its industry in the past year. The company’s shares have gained 42.8% against its industry’s decline of 5.1%.
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