Plug Power (NASDAQ:PLUG) has made a slew of announcements this month, the latest being an expansion of its partnership with shipping and packaging supplies company Uline.
As part of this expansion, Plug will install an 18,000-gallon hydrogen storage tank and 17 hydrogen dispensers at Uline’s new campus in Kenosha, Wisconsin. These additions will power four distribution centers on the campus. Plug will also provide Uline with 250 more fuel-cell forklifts that will receive on-site hydrogen power.
“The ongoing expansion of our eight-year partnership with Uline stands as a testament to the remarkable impact our hydrogen and fuel cell technology has on material handling operations,” said CEO Andy Marsh. “Given Uline’s business strategy of same day turn-around, productivity and predictability are important and are key benefits that Plug’s fuel cell solutions deliver to Uline.”
PLUG Stock: Plug Expands Partnership With Uline
Plug’s hydrogen infrastructure for Uline is expected to be operational within 10 months. Uline’s first distribution center at its new campus is expected to be completed this year with additional buildings set to be constructed in later years. That could mean more hydrogen infrastructure services from Plug.
Plug first partnered with Uline in 2015, with the company utilizing 270 fuel-cell forklifts as of 2023. The expansion will lift that figure to 520 forklifts as well as a total of 34 hydrogen dispensers across 10 facilities. Uline is a major customer of the green hydrogen company.
Earlier this week, Plug also announced that it had finalized a contract with an undisclosed “major U.S. automobile manufacturer.” The contract will see Plug provide the manufacturer with a fuel-cell fleet, two liquid hydrogen storage tanks and over 10 hydrogen dispensers to support its manufacturing campus of over six square miles. Installation of the hydrogen infrastructure will begin this year with an estimated operational date in the first quarter of 2025.
Meanwhile, Plug has a major catalyst coming up. The company has confirmed that it will report its Q4 earnings on Friday, March 1 before the market open. Analysts are expecting an 8% revenue decline to $203 million and a GAAP EPS loss of 41 cents.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
