Plug Power Shares Jolted Higher Following Expansion Agreement With Wal-Mart Canada

Shares of Plug Power Inc PLUG spiked higher by more than 5 percent during Tuesday's pre-market session after the company announced an expansion of a previous agreement with Wal-Mart Stores, Inc. WMT's Canadian division, Wal-Mart Canada.

Plug Power is a provider of alternative technology focused on the design, development, commercialization and manufacture of fuel cell systems for the industrial market. The company announced that it will provide an addition 124 GenDrive fuel cells for Wal-Mart Canada's new High Velocity Distribution Center building in Balzac, Alberta.

According to the company's press release, GenDrive hydrogen fuel cells are preferred as they allow customers to see increased productivity from its lift truck fleets. Hydrogen fuel cells eliminate the need to change batteries and are an environmentally-friendly power source.

The announcement is an extension of the agreement the two companies reached in 2010 and brings the GenDrive total upwards of 230 units at the site. The company has deployed more than 1,800 GenDrive units to Wal-Mart's U.S. operation as part of an agreement that dates back to 2007.

"Plug Power values Walmart Canada as a client and strives to help them further their productivity improvements through the use of our hydrogen and fuel cell products," said Andy Marsh, CEO at Plug Power. "This expansion project illuminates the success seen to date – success Plug Power intends to continue through our work with this important customer."

Plug Power will also supply its proprietary GenFuel system that provides advanced diagnostics to help the user monitor fleet fueling and operational metrics. This marks the first GenFuel installation in all of Canada.