Boston, MA, 02/28/2014 – The future picture of Plug Power Inc (NASDAQ:PLUG) looks rosy as the fuel cell technology provider is beaming under the spotlight for its record contract with Wal-Mart stores. This week, Plug Power confirmed that it received GenKey purchase order from Wal-Mart, which has already been using its services at other locations.
The Record Contract
Plug Power Inc (NASDAQ:PLUG) is already seeing the deal as a ‘milestone’ for its own technology and will help to position and strengthen the growth of Fuel Cell into the mainstream market. As a part of the deal, Plug Power has to provide 1,738 GenDrive units of fuel cells to the retailer, along with its installation and servicing for a period of six years for each of the site. The fuel cells will be installed at six locations of the retailer’s North American distribution centers, where it will utilize them in the electric forklift trucks. The complete execution of the order is expected to complete over a period of two years, however, one of the contract installation is slated to complete during the second quarter of this year.
The two companies have not revealed the financial terms of the contract, but the analyst at Cowen & Co. said that estimated the transaction cost of $50 million. During the last reported quarter, the company’s orders were roughly around $32 million.
Catalyst To Other Fuel Cell Makers
The spike in Plug Power’s share prices has fuelled the prices of its competitors as well. Soon after the announcement of the deal, the shares of fuel-cell makers like Ballard Power Systems Inc. (USA) (NASDAQ:BLDP), FuelCell Energy Inc. (NASDAQ:FCEL) and Capstone Turbine Corporation (NASDAQ:CPST) too soared to high levels on the day. One of the main factors driving their prices up is the positive outlook of the Fuel Cell industry as a whole over the growth prospects of the technology. And, Plug Power Inc (NASDAQ:PLUG)’s recent deal essentially confirms the thought.