Plug Power is poised to triple its revenue this year to $75 million as the Latham, New York fuel cell maker continues to boost sales by installing more hydrogen refueling stations, selling more fuel cells and growing its service business.
The homegrown public company manufactures fuel cells used to power forklifts in large warehouses and distribution centers for a roster of retailers and manufacturers that include BMW, Walmart, Procter & Gamble and Kroger.
Plug Power shipped 857 of its fuel cells, known as GenDrive units, during the third quarter, compared to 155 during the same period last year.
Over the past four months, the company also installed new fuel cells and refueling stations at four Walmart distribution centers, said CEO Andy Marsh. Among the Walmart distribution center projects was Walmart's location in Johnstown, New York. That was the second site in New York state where Plug Power has supplied fuel cells to power forklifts in addition to installing refueling stations and working out a long-term service agreement. The package is marketed under the name GenKey. The first New York site was a distribution center for CVS pharmacy in the Southern Tier.
Plug Power (NASDAQ: PLUG) expects revenue to grow from a little more than $26 million in 2013 to $75 million in 2014.
Much of that growth is linked to Plug Power's GenKey product and service package.
Marsh said Plug Power has the potential to earn between $8 million and $12 million over five years for each customer that orders fuel cells for 250 forklifts, a refueling station and a service contract. The dollar amount is about double what Plug Power would earn by only providing the fuel cells. Plug Power has developed fuel cells that create an electric current through a chemical reaction. The device is sold as an alternative to battery and diesel powered equipment.
Plug Power also expects to ship fuel cells during the fourth quarter that will power vehicles that FedEx uses to transport packages at airports, Marsh said.
The company will report third quarter earnings next month.
Marsh said revenue is growing as Plug Power focuses on using its technology in more equipment in the material handling industry such as refrigerated trucks and airport transportation vehicles.