Customer Success With Lower-Cost Hydrogen Production Systems Expands Market for Plug Power GenDrive Fuel Cells
Cost-Effective On-Site Reformers Enable Sites With as Few as 20 Forklift Trucks to Embrace Hydrogen Power
LATHAM, N.Y., July 11, 2013 -- Plug Power Inc. (Nasdaq:PLUG), a leader in providing clean, reliable energy solutions, today highlights that recent customer success with hydrogen production systems, called on-site reformers, allows GenDrive® fuel cells to provide cost-effective power for smaller forklift truck fleets. On-site reformer systems convert natural gas to hydrogen on customer premises, which decreases fuel infrastructure costs and makes hydrogen power more viable.
To power their fuel cell vehicles, customers have two hydrogen supply options: install a hydrogen storage system that dispenses delivered compressed hydrogen, or install a reformer infrastructure on-site that generates, compresses, stores and dispenses hydrogen.
Plug Power initially focused GenDrive sales efforts on large distribution centers where replacing lead-acid batteries with cleaner, more efficient fuel cells provided a green, cost-effective solution for fleets averaging 100 forklift trucks.
With cost-efficient on-site hydrogen production solutions now proving to be a viable option, Plug Power is able to broaden its reach and supply fuel cell solutions to customer sites with fleet sizes as small as 20 forklift trucks. This capability could lead to a 40 percent expansion in the company's serviceable addressable market, and expand Plug Power's North America market size by more than $1 billion.
Already, GenDrive units are being ordered by customers who will be generating hydrogen on-site. One such Plug Power customer, Ace Hardware, will deploy 65 GenDrive units to power its lift truck fleet at its newest retail support center in Wilmer, TX, when it is completed in 2014. Ace Hardware will be using an on-site hydrogen generation and refueling solution provided by Nuvera Fuel Cells. On-site generation of hydrogen will allow Ace to eliminate most of the upfront costs of bringing hydrogen to the site.
"Low-cost hydrogen infrastructure is crucial to expansion for Plug Power," said Andy Marsh, CEO at Plug Power. "The ability to satisfy smaller fleets within our already proven market of material handling will allow Plug Power to successfully work with smaller customer sites where hydrogen now makes sense for their business."
About Plug Power Inc.
The architects of modern fuel cell technology, Plug Power is revolutionizing the industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints. Long-standing relationships with industry leaders forged the path for Plug Power's key accounts, including Walmart, Sysco, P&G and Mercedes. With more than 4,000 GenDrive units deployed to material handling customers, accumulating over 12 million hours of runtime, Plug Power manufactures tomorrow's incumbent power solutions today. Additional information about Plug Power is available at www.plugpower.com.