Amazon has announced plans to produce hydrogen fuel at its fulfillment centers and has partnered with hydrogen company Plug Power to install the first electrolyzer (equipment that can split water molecules to produce hydrogen) at a fulfillment center in the state of Colorado in the US.

The one-megawatt (MW) proton exchange membrane electrolyzer is the first for Amazon and is producing low-carbon hydrogen to fuel more than 225 hydrogen fuel cell-powered forklift trucks at the site.

“Hydrogen is an important tool in our efforts to decarbonize our operations by 2040 in support of The Climate Pledge, and we’re excited about our ability to produce hydrogen at Amazon facilities through this partnership with Plug,” said Asad Jafry, the director of global hydrogen economy at Amazon.

“On-site production will make the use of hydrogen even more energy efficient for certain locations and types of facilities,” he added.

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The Plug 1MW electrolyzer, which uses electricity and water to produce hydrogen, can support up to 400 hydrogen fuel cell-powered forklift trucks.

The hydrogen produced by the electrolyzer will be compressed on-site and stored in a gaseous hydrogen storage tank for use by the forklift trucks.

“In Amazon, we have a true partner that recognizes the essential role hydrogen plays in our collective energy future,” said Plug CEO Andy Marsh.

“This project demonstrates Plug’s ability to execute across the full hydrogen value chain, and shows how we can design and implement end-to-end solutions for our customers.”

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To date, Plug has collaborated with Amazon to deploy more than 17,000 fuel cells to replace batteries in forklifts in more than 80 fulfillment centers in North America.

For most of these locations, hydrogen to power the forklifts is produced elsewhere, liquified, and delivered by trucks to an on-site storage and dispensing system.