NEW YORK (TheStreet) -- Plug Power's (PLUG) time has come. The hydrogen fuel cell maker, which has consistently lost money for years now, has found the market that will allow its product to push the company into the black.
There are currently over 6 million forklifts in use in warehouses around the world. Most forklifts currently run on battery power (battery power that uses electricity and takes time to charge). Hydrogen fuel cells provided by Plug on the other hand use no electricity and are fully charged in literally seconds, saving warehouses across the world both time and money.
"We always knew we were going to be successful", said CEO Andy Marsh in a statement. "In 2014 we will make money."
Indeed, since January Plug's stock is up nearly 410%.
"Our units can dramatically improve the productivity of an organization", continued Marsh. Wal-Mart (WMT) seems to agree as they have purchased 1,700 fuel cells from the company over a four-week period. Before making this commitment, Plug had to prove its value to the retailing giant in 3 warehouses over a period of a couple of years.
The company has also managed another successful program with FedEx (FDX). Marsh insists that hydrogen fuel cells can be used in conjunction with current fuel systems to extend run time. In its run with FedEx, the fuel cells were attached to lithium battery-powered delivery vans and doubled the range of those vans from 80 miles to 160 miles.
Plug is also developing a recurring revenue model that goes further than selling units to customers. The company is investing in developing hydrogen power stations across the country. While there are currently only 14 power stations in the U.S., Plug is working on building 45 stations on its own.
Plug stock was up 24.4% to $7.91 as of midafternoon Friday.
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