Plug Power Inc (NASDAQ:PLUG) CEO Andrew Marsh has once again made market-moving comments. This time, he told Bloomberg that they’re talking about expanding usage of their fuel cells into areas beyond forklifts and trucks, like support vehicles for airports and refrigerated trucks.
Forklifts not the ultimate goal
According to Marsh, they never intended to stop with making fuel cells for forklifts. Plug Power Inc (NASDAQ:PLUG) aims to build an ecosystem for industry which runs on fuel cells. He said forklifts were just the very first product which generated enough revenue to support their company. He said they focused on forklifts because they needed a segment which was big enough upon which to build their business. He also said the material handling industry needed “a better product,” so that’s why they focused on that industry.
Plug Power Inc (NASDAQ:PLUG) is currently the best performer within the NASDAQ. Just within the last six months alone, the company’s stock has risen by over ninefold, according to Bloomberg. In fact, Plug Power is projecting its orders to nearly quadruple in 2014, hitting approximately $150 million. Marsh also stated that they continued to expect positive EBITDA this year.
How Plug Power’s technology could be used
Plug Power Inc (NASDAQ:PLUG)’s fuel cell system is powered by hydrogen and replaces the more standard batteries which use lead-acid. The fuel cells are made to run 24 hours a day with only short breaks needed to add more hydrogen. However, traditional batteries need time to charge, so either the forklifts are out of commission while the charging occurs or each needs a second battery, which takes up extra space.
The fuel cells developed by Plug Power Inc (NASDAQ:PLUG) are also entirely silent and do not emit carbon. According to Marsh this makes them a good idea for refrigerated food trucks, which use diesel generators to power their cooling systems currently. He notes that many cities restrict the idling of trucks through noise ordinances, so offering a silent solution would be beneficial.
Plug Power Inc (NASDAQ:PLUG) is working with SYSCO Corporation (NYSE:SYY) currently to show off the fuel cell systems for the refrigerated trucks. Then Marsh said they plan to begin commercial sales in approximately 18 months.
Plug Power affects other stocks
Plug Power Inc (NASDAQ:PLUG) shares aren’t the only ones edging upward on Marsh’s interview today. The company uses cells provided by Ballard Power Systems Inc. (USA) (NASDAQ:BLDP). Shares of Ballard rose more than 2%
FuelCell Energy Inc (NASDAQ:FCEL) shares also edged upward by more than 1% in early trading today.