- Amazon is teaming up with Plug Power to produce hydrogen fuel. The company began producing hydrogen by installing the first electrolyzer at a center in Aurora.
- Hydrogen is seen as a cleaner alternative to fossil fuels, but environmental impacts and costs during the production process are still significant issues.
Retail giant Amazon aims to produce hydrogen fuel in its fulfillment centers. In partnership with hydrogen company Plug Power, the company installed the first electrolyzer capable of producing hydrogen by splitting water molecules at a supply center in Colorado.
While Plug says it has the capacity to provide fuel for up to 400 hydrogen fuel cell-powered forklifts, the electrolyser will produce fuel for approximately 225 forklifts at the facility. This is the beginning of Amazon’s initiative to produce its own hydrogen on-site and continues the company’s efforts in this area.
“On-site production will make hydrogen use even more energy efficient for certain locations and facility types,” Asad Jafry, Amazon’s global hydrogen economy director, said in a statement. “Hydrogen will be a key tool in decarbonizing our operations by 2040.” said.
Hydrogen is considered a cleaner alternative to fossil fuels, which is why Amazon uses hydrogen in its warehouses. But potential environmental benefits remain difficult to quantify. This largely depends on how policymakers and companies shape the hydrogen supply chain.
Hydrogen produces water vapor rather than greenhouse gas emissions during combustion, making it attractive to companies and governments striving to meet climate goals. However, the biggest problem is the need to clean up the hydrogen production process. Most hydrogen today is produced using fossil fuels, primarily through a reaction between steam and methane. This process produces planet-warming carbon dioxide, and methane leaks are also a problem.
Plug takes a clean approach to producing hydrogen through electrolyzers, by splitting water into hydrogen and oxygen instead of using methane. If this electricity is obtained from renewable sources, it is called “green hydrogen”. However, although this method reduces pollution, it can be more expensive. US President Biden’s administration is trying to change this situation by supporting clean hydrogen production with tax incentives and federal financing. Last year, President Biden invoked the Defense Production Act to increase domestic production of electrolyzers.
Since 2016, Plug has delivered nearly 17,000 fuel cells for forklifts to more than 80 fulfillment centers across North America. But most of the hydrogen used for these cells is produced elsewhere and transported to warehouses by trucks.
Producing hydrogen on-site can reduce the pollution problem caused by transporting the fuel. However, the hydrogen currently produced at the supply center in Colorado is still under the influence of fossil fuels because it is connected to the electricity grid. About 60 percent of the U.S. electricity mix still comes from fossil fuels.
Compiled by: Ayça Ayaz
