“Soon there won’t be any other solution but to have a vehicle that is decarbonized to make deliveries,” Marsh said. Another five or six commercial vehicle partnerships are underway, according to Marsh, but DHL is the only one that has been publicly announced.Įver more stringent policies restricting fossil fuel use in Europe will continue to drive market adoption of fuel cell vehicles, said Marsh, who serves on the hydrogen technical advisory committee for the U.S. Plug is already supplying hydrogen fuel cell-powered engines for 100 electric delivery trucks for DHL in Germany. The final $200 million chunk will come from its emergent on-road commercial vehicle program. That division is expected to generate $50 million by 2024, Marsh said. Marsh hinted at an expanded partnership with Daimler in Germany but declined to offer specific details.Ī second bucket of revenue will come from manufacturers’ stationary power systems, which provide backup power for telecoms and data center customers. Other automobile industry customers include BMW, GM and, most recently, Fiat Chrysler the latter signed a deal with Plug Power during the third quarter of 2019. Growing its materials handling division to $750 million by 2024 is one of several action items in the company’s five-year plan, Marsh said.ĭaimler and Plug Power have a longstanding relationship in this area, with the auto manufacturer deploying 400 Plug fuel cell systems in forklifts located at its Mercedes–Benz plant in Vance, Alabama. Technology development agreements with the two shippers aimed at exploring new yet-to-be revealed applications are expected to drive additional revenue. That business will continue to grow over the next five years in tandem with warehouse expansion, said Marsh. The company has shipped more than 28,000 units to dozens of warehouse customers, including 20 Amazon ( NASDAQ: AMZN) and 40 Walmart ( NYSE: WMT) locations. Unlike some flashier companies in the hydrogen fuel cell space, Plug’s core business is no frills – making fuel cells that power forklifts in warehouses and distribution centers. After launching as a research and development enterprise, it moved into making Membrane Electrode Assemblies (MEAs) – the core component of a fuel cell – followed by fuel cell stacks and systems, as well as hydrogen infrastructure. The manufacturer lost $13.2 million in the third quarter but was positive $2.5 million on an EBITDA basis (earnings before interest, taxes, depreciation and amortization).įounded in 1997, Plug Power has always taken a practical approach to fuel cell product development, Marsh said. That exchange took place a couple of weeks after Plug Power met analysts’ third quarter earnings expectations by reporting an $0.08 per-share adjusted loss. Plug Power CEO Andy Marsh revealed more details about how the company aims to hit the $1 billion mark during a conversation with FreightWaves on Nov. It's going to be our own technology," Hutchinson said on a quarterly call with analysts.įortescue did not mention the collapsed partnership in its quarterly report on Friday, where it said it had made "strong progress" on the plant, but when asked about it on a conference call, said that it no longer planned to use Plug Power's technology.Earlier this fall, Latham- New York-headquartered fuel cell manufacturer Plug Power (NASDAQ: PLUG) announced plans to boost revenues from around $240 million today to $1 billion by 2024.Ī pioneer in the fuel cell space, the company said it would achieve that goal by growing its materials handling business and diversifying into on-road vehicles, drones and other next-generation fuel cell applications. "So we really didn't think that was worthwhile to move ahead that we're still working with them on electrolyzers."įortescue Future Industries (FFI) CEO Mark Hutchinson said the company is going ahead with building the electrolyser plant with its own technology. "One, we decided that we didn't want to build a factory with them because we saw the economics, we could do better," Marsh said, according to a transcript of the conference call with analysts. In a business update on Thursday, Plug Power CEO Marsh said the plant deal with Fortescue was off. The project, announced in October 2021, was to be a key plank in Fortescue's transition toward becoming a major green energy company through its Fortescue Future Industries arm.įortescue announced plans with Plug Power in October 2021 to build the world's biggest factory to make electrolysers and held a sod-turning at the site in Gladstone in Australia's northeast last February aiming to produce their first electrolyser in 2023.
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