Plug Power and 3M signed a strategic agreement for membrane electrode assemblies (MEAs). The alternative energy technology provider will be using the MEAs to its proton exchange membrane (PEM) fuel cell stacks.
According to Plug Power, 3M applied its expertise in electrochemistry, fluoropolymer membrane, and high throughput manufacturing to develop advanced fuel cell MEAs. Plug Power integrated 3M’s capability to its fuel cell stack designs, which offer better performance and extended life.
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In a statement, Jeffrey Hohn, vice president of renewable energy at 3M said the company is “pleased to have the opportunity to draw upon our broad fuel cell expertise to supply Plug Power MEAs with industry leading cost, performance, and durability.”
Mr. Hohn also described Plug Power as a global leader in fuel cells. He believed the strategic relationship would be beneficial for the both companies’ strength, and it would enable the next generation of electric mobility.
Plug Power and 3M to set a new benchmark for performance for hydrogen fuel cell
The supply agreement with 3M allows Plug Power to manufacture robust fuel cell stacks at its facilities in Latham, New York and Spokane, Washington. The deal also supports the $20 billion material handling market.
Plug Power added that the new fuel cell stack technology would help boost its presence in hydrogen enabled electric vehicle applications outside the material handling market. The company will begin shipping the fuel cell systems integrated with 3M’s MEAs in the fourth quarter of 2015.
Plug Power CEO Andy Marsh said, “With this strategic relationship, both Plug Power and 3M will set the new benchmark for performance and reliability for hydrogen fuel cell products in the most demanding electric mobility application – material handling.”
Mr.Marsch also stated that the joint knowledge and development capability of both companies would allow improvements in cost and performance for the electric vehicle market in the future.
Plug Power stock and financial performance
The stock price of Plug Power increased more than 3% to $1.84 per share at the time of this writing around 1:22 in the afternoon in New York.
Plug Power still lost more than 53% of stock value over the past year as the company’s stock declined from its highest level of $4.32 per share to its current trading price.
On Monday, Plug Power reported that its third-quarter revenue was $31.4 million including $18 million in product revenue, $13.4 million in service revenue and $10,000 in R&D contract revenue. During the same period last year, the company posted $19.9 million in revenue.
The company generated revenue for 1,221 GenDrive units during the quarter, up from 835 units in the same period a year ago.
Plug Power had approximately 8,115 GenDrive units and 22 hydrogen infrastructure site service contracts under GenCare. The company also had 22 GenFuel contracts of September 30, 2015.