Is Paris Climate Agreement Beginning To Yield Benefits For Plug Power Inc (NASDAQ:PLUG)

Is Paris Climate Agreement Beginning To Yield Benefits For Plug Power Inc (NASDAQ:PLUG)

Plug Power Inc (NASDAQ:PLUG) has announced its third contract this month alone with food distributor Newark Farmers Market. The latest deal involves the supply of several units of the new GenDrive fuel cell that NFM will use to power its electric industrial forklifts.

Just this month Plug Power inked a couple of deals with some international customers. The company secured fuel cell supply contracts with Carrefour and FM Logisitics earlier this month. The two companies are based in France, a country where many nations converged late last year to draft an agreement that will guide efforts to reduce climate change.

Energy is one sector that is being targeted in the efforts to reduce greenhouse gas emissions. PLUG’s fuel cell products enable companies to cut their carbon footprint and the Paris Climate Agreement is going to boost demand for products such as fuel cells that help with managing climate change by reducing carbon emissions.

Unlocking opportunities abroad

Plug Power did not disclose the financial details of its deals with Carrefour and FM Logisitics of France. But there is no doubt that those international customers will increase awareness of PLUG’s products abroad and open up new sales opportunities for the company.

Supply of 96 GenDrive units

In the case of NFM, Plug Power is serving a repeat customer who has demonstrated great confidence in the kind of energy solutions that PLUG offers. The latest order from NFM involves the supply of 96 next-generation GenDrive units. NFM said that it intends to use the new fuel systems on its fleet of industrial forklifts operating at its distribution center in Newark, New Jersey. The order for the new GenDrive fuel cells comes shortly after NFM completed adding more than a hundred new fuel cell refueling systems.

NFM has been using PLUG’s GenDrive fuel cells since 2011 and the management of the food distributor commented in a press release that they like the benefits they are seeing by using the clean fuel systems. According to NFM’s CEO, David Forem, they have seen an increase in productivity and operational efficiency since they started deploying GenDrive fuel cells.

Besides NFM, Plug Power also supplies its fuel cells to Wal-Mart Store, Inc. (NYSE:WMT), Central Grocers and Wegmans among others.