Amazon.Com Inc AMZN is advancing its efforts to produce hydrogen fuel at its fulfillment centers, starting with a partnership with hydrogen company Plug Power, Inc PLUG.
The first project is installing an electrolyzer at a fulfillment center in Aurora, Colorado.
This equipment can split water molecules to produce hydrogen, fueling about 225 forklift trucks at the site, with the capacity to supply up to 400 hydrogen fuel cell-powered forklifts.
This marks Amazon's initial attempt to manufacture hydrogen on-site, the Verge reports.
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Asad Jafry, Amazon's director of global hydrogen economy, stated that on-site production would enhance hydrogen's energy efficiency for specific locations and facility types.
He emphasized hydrogen's role in Amazon's goal to decarbonize operations by 2040.
Currently, most hydrogen production uses fossil fuels, particularly a reaction between steam and methane, releasing carbon dioxide and risking methane leaks.
Plug Power aims to address these issues by employing electrolyzers that use electricity to separate water into hydrogen and oxygen.
When powered by renewable energy sources like wind or solar, this method produces green hydrogen, though it is more costly than traditional methods.
The Biden administration has introduced tax incentives and federal funding to support clean hydrogen production hubs.
Since 2016, Plug has delivered 17,000 fuel cells for forklifts to over 80 Amazon fulfillment centers in North America, with hydrogen typically transported by truck.
The electrolyzer uses the power grid for Amazon's Colorado site, which still largely relies on fossil fuels.
Amazon plans to pair the electrolyzer with on-site renewable energy to achieve green hydrogen but lacks a definite timeline for this transition. Despite Amazon's commitment to match its operations' electricity use with renewable energy by 2025 and achieve net-zero emissions by 2040, its carbon footprint has recently grown by about 39 percent.
Earlier this year, Amazon launched its first global all-electric delivery fleet in India, allowing Delivery Service Partners to lease specially designed three-wheeler electric vehicles (EVs) for parcel delivery.
This initiative, unveiled in time for the Diwali festival, intends to grow its electric vehicle fleet further.
Working in collaboration with manufacturers like Mahindra Electric, Amazon has successfully deployed over 6,000 electric vehicles across more than 400 cities in India.
The company is targeting the milestone of 10,000 electric vehicles by 2025.
Price Action: AMZN shares traded higher by 0.05% at $153.45 on the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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