Plug Power Climbs on Expanded Walmart Fuel Cell Partnership

Plug Power began expanding hydrogen and fuel cell solutions into Walmart’s e-commerce network in August.
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Plug Power  (PLUG) - Get Report was climbing Tuesday after the hydrogen fuel cell company said it was supplying Walmart  (WMT) - Get Report with hydrogen and fuel cell products.

Shares of the Latham, N.Y.-based Plug Power were up 13% to $28.97. 

Plug Power, which has been supplying the retailer since 2010, said that it already supports more than 9,500 fuel cell-powered Walmart vehicles at 37 distribution centers across North America.

The company said that it began expanding hydrogen and fuel cell solutions into Walmart’s e-commerce network in August and it plans additional expansion in 2021.

During the coronavirus pandemic, Plug Power said that its products have enabled leading retailers like Walmart "to fulfill increased demand from customers at a rapid pace."

"Walmart is one of our foundational customers, with our relationship rooted in trust and results as we work toward a more sustainable future together,” CEO Andy Marsh said in a statement. 

The application expansion "signifies the next step in our relationship as we support Walmart in their scaling eCommerce business while helping them meet the operational goals important to both Walmart and consumers," Marsh said.

Plug Power said some of its other customers include Amazon  (AMZN) - Get Report, BMW, South Co.   (SO) - Get Report and Carrefour.

The company's GenDrive system integrates fuel cells manufactured by both Plug Power and Ballard Power Systems  (BLDP) - Get Report. The system incorporates a hydrogen storage system that allows the system to "recharge" quickly as opposed to several hours for lead-acid batters. 

Last month, Plug Power posted better-than-expected third-quarter results. Revenue totaled $107 million, up 80% from $59.5 million a year earlier.