Plug Power Inc (NASDAQ:PLUG) announced that Wal-Mart Stores, Inc. (NYSE:WMT) expanded its contract with the company to install hydrogen refueling stations.
Plug Power’s initial contract with Wal-Mart
In February, Plug Power Inc (NASDAQ:PLUG) signed an agreement with Wal-Mart Stores, Inc. (NYSE:WMT) to supply 1,738 GenDrive fuel cell units together with infrastructure and fueling services for six Wal-Mart centers over the next two years.The contract was worth $50 million.
The Electron Global Fund was up 2% for September, bringing its third-quarter return to -1.7% and its year-to-date return to 8.5%. Meanwhile, the MSCI World Utilities Index was down 7.2% for September, 1.7% for the third quarter and 3.3% year to date. The S&P 500 was down 4.8% for September, up 0.2% for the third Read More
Market observers described Plug Power’s contract with Wal-Mart as a game changer because it is the largest order it received from a single customer.
Plug Power expects additional orders
Andy Marsh, the president and CEO of Plug Power Inc (NYSE:PLUG), Wal-Mart Stores, Inc. (NYSE:WMT) ordered the installation of hydrogen refueling station for its distribution center in Sterling, Illinois.
Plug Power Inc (NYSE:PLUG) installed a refueling station in Pottsville, Pennsylvania. According to Marsh, the retail giant contacted him in May to duplicate it in another Walmart site. The company is currently installing a similar refueling station in Johnstown, New York.
During the annual shareholder meeting of the company, Marsh said, “With recent success, I think that number will accelerate. The better we do, the better opportunity we’ll have to move more sites next year.” He added that is critical to the expansion of Power Plug Inc (NYSE:PLUG).
Marsh emphasized that the objective of Power Plug Inc (NYSE:PLUG) is to install hydrogen refueling stations in all of the 100 distribution centers of Wal-Mart Stores, Inc. (NYSE:WMT) in North America.
According to him, the company will start the installation of the refueling station in Wal-Mart’s distribution center in Sterling, Illinois on September.
Marsh shifts Plug Power’s strategy to production
Marsh shifted the business strategy of Plug Power Inc (NYSE:PLUG) from research to production. The decision was part of the company’s initiative to boost its revenue stream by expanding its products and services to customers in the material handling market.
At present, there are over 4,500 forklifts running its fuel cells in North America. Aside from Wal-Mart Stores, Inc. (NYSE:WMT), the company also installed hydrogen fuel cell systems for CVS Caremark Corporation (NYSE:CVS) and Mercedez-Benz.
Last month, Plug Power Inc (NYSE:PLUG) announced that it is close to achieving an agreement to supply fuel cell units to FedEx Corporation (NYSE:FDX) and other airport ground support equipment (GSE) operators.