How Amazon is Fueling its Forklifts With In-House Hydrogen

Glenn Taylor
·4 min read
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Amazon’s commitment to decarbonization is extending further into the technology powering its warehouses.

In partnership with hydrogen solutions provider Plug Power Inc., the e-commerce giant completed the installation and commissioning of an electrolyzer system at an Amazon fulfillment center in Aurora, Col.

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The system can split water molecules to produce emissions-free hydrogen, which represents a cleaner power alternative to fossil fuel production—and could help propel Amazon to its 2040 net-zero goal set when it co-founded the Climate Pledge in 2019.

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, known as “DEN8.”

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

Hydrogen produces water vapor instead of greenhouse gas emissions during combustion, a trait that’s made it more attractive to companies and governments working to meet climate goals.

“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.”

Plug has been a frequent collaborator with Amazon, already deploying 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, the hydrogen that powers the forklifts is produced elsewhere, liquified, and delivered by trucks to an on-site storage and dispensing system.

Plug says it recognized an opportunity—particularly in locations where more renewable electricity is generated than the site needs at a given time—to use that surplus electricity to produce and store hydrogen on-site. This model also avoids the emissions typically generated in liquifying and transporting hydrogen from one site to another.

For this project, Plug provided design, installation, commissioning and maintenance services for the 1MW PEM electrolyzer and hydrogen storage—compatible with the existing refueling infrastructure and fuel cells already in use at the site.

Amazon has taken plenty of heat from detractors like environmental nonprofits such as Stand.earth and even two of its own institutional shareholders on claims that it isn’t doing enough to reduce greenhouse gas emissions in its supply chain.

In August, the Science Based Targets initiative (SBTi), a United Nations-backed entity that validates net-zero plans, removed Amazon from its list of companies taking action on climate goals after the company failed to implement its commitment to set a credible target for reducing carbon emissions. Amazon said in response that it is continuing to work with SBTi, while it sought to set science-based targets with other organizations.

The company’s 2022 sustainability report, released in July, cited a 0.4 percent decrease in absolute carbon emissions—but that dip came after three straight years of increases, including 18 percent alone in 2021.

The tech titan has always sought to brush off its critics, citing its plan to use 100 percent renewable energy by 2025—which comes five years ahead of its original 2030 target. To reach this target, Amazon plans for 100 percent of the electricity it uses to be attributable to renewable energy sources. Ninety percent of the electricity consumed by Amazon in 2022 was attributable to renewable energy sources.

In September, Amazon made its first investment in direct air capture (DAC) technology, which is designed to remove emissions from the atmosphere, by committing to purchase 250,000 tons of removal credits over 10 years.

Amazon will purchase the credits from the 1PointFive direct air capture (DAC) plant in Ector County, Texas, which is being developed by oil giant Occidental Petroleum’s Oxy Low Carbon Ventures subsidiary. 1PointFive is working to help curb global temperature rise to 1.5° Celsius by 2050.

As for Plug Power, the company has deployed more than 60,000 fuel cell systems and over 180 fueling stations, and claims it is the largest buyer of liquid hydrogen. With plans to build and operate a green hydrogen highway across North America and Europe, Plug is operating a state-of-the-art “gigafactory” to produce electrolyzers and fuel cells, and is developing multiple green hydrogen production plants targeting 500 tons of liquid green hydrogen daily by year end 2025.