Plug Power Inc. (NASDAQ: PLUG) saw its shares skyrocket on Wednesday morning after the company announced a key deal with Amazon.com Inc. (NASDAQ: AMZN). Essentially the companies announced that they had reached an agreement for Amazon to use Plug Power fuel cells and hydrogen technology in its fulfilment network.

At select fulfillment center locations, Amazon will begin powering its industrial equipment, such as forklifts, using the GenKey technology, which will enable faster charging times, reduce costs and support energy-efficiency in Amazon’s fulfillment operations. Revenues associated with the commercial agreements are expected to be around $70 million in 2017.

Apart from the deal to use Plug Power’s technology in the fulfilment network, Amazon and Plug Power will begin working together on technology collaboration, exploring the expansion of applications for Plug Power’s line of ProGen fuel cell engines.

Andy Marsh, CEO of Plug Power, commented:

This agreement is a tremendous opportunity for Plug Power to further innovate and grow while helping to support the work Amazon does to pick, pack and ship customer orders. Our hydrogen fuel cell technology, comprehensive service network, and commitment to providing cost-savings for customers has enabled Plug Power to become a trusted partner to many in the industry and we are excited to begin working with Amazon.

In the release, the companies also detailed Plug Power’s warrants granted to Amazon:

Plug Power has granted Amazon warrants to acquire up to 55,286,696 of Plug Power’s common shares at $1.1893 per share (Exercise Price), which is based on the volume weighted average closing price of Plug Power common shares for the thirty trading days ending April 4, 2017.  Vesting of the warrants is tied to payments totaling $600 million in the aggregate made by Amazon, directly or indirectly, in connection with the purchase of goods and services from Plug Power.  An adjustment to the Exercise Price will occur after the first 34,917,912 warrants have vested, and will be based on the volume weighted average closing price, at the time that such warrants vest.

Shares of Plug were last seen up 64% at $2.12 on Wednesday, with a consensus analyst price target of $2.01 and a 52-week trading range of $0.83 to $2.40.

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