The company announced an expansion of its partnership with the national retailer that consists of a revised version of its agreement with Walmart regarding its fuel cell capabilities. Plug Power will have access to project financing at a lower cost of capital and no restricted cash.
The move will make the company’s future distribution transactions with Walmart cash flow positive from the beginning. Plug Power will implement its GenKey hydrogen fueling station and fuel cell energy solutions in up to 30 more Walmart sites in North America over the coming three years.
The company has already implemented 22 of these sites since 2014, amounting to a fleet of 5,500 Plug Power fuel cells at Walmart’s distribution centers.
“Our expanding relationship with Walmart validates Plug Power’s advanced capabilities in fuel cell products and systems, allowing the world’s largest retailer to maintain its leading position as an industry innovator,” said Andy Marsh, CEO of Plug Power.
Marsh added that the move will help the company improve its revenue visibility and cost structure, while also allowing customers to see higher productivity from the company.
As part of the deal, Walmart will buy up to 55,286,696 of Plug Power’s common shares.
PLUG stock grew 9.7% Friday, while WMT shares fell 0.3%.