Plug Power Acquires American Fuel Cell (AFC); Research and Development Capabilities Expand in On-Road Applications Including ...
June 06 2018 - 7:00AM
Plug Power Inc. (NASDAQ:PLUG), a leading provider of energy
solutions that change the way the world moves, today announced the
acquisition of American Fuel Cell, a premier developer of
Membrane Electrode Assembly (MEA) technology, the key
catalyst for fuel cells to create power. With this acquisition Plug
Power gains innovative, leading edge MEA design capability coupled
with specialized system knowledge for on-road applications. This
acquisition accelerates the company’s expansion into the on-road
industry, inclusive of delivery vehicle fleets that are
increasingly utilizing fuel cell or electric powertrains. Frost
& Sullivan, the research firm, recently forecasted the electric
truck market (global light, medium, and heavy-duty hybrid) to be on
track to achieve annual sales of 2.25M units by 2025. With the
global push for cleaner solutions for transportation of goods and
passengers, and targets for reduced emissions looming in the near
future, solutions such as fuel cell powertrains will continue to
grow in popularity, requiring extensive innovation in order to
ensure that fuel cell technology capabilities continue to lead the
market. Fuel cells provide a unique opportunity to generate clean,
efficient electricity coupled with high power density, extended
range, and market-leading uptime due to rapid refueling. American
Fuel Cell’s highly skilled team of specialists, based in Rochester,
NY, apply their years of experience from past positions at General
Motors to drive system optimization and MEA development, especially
as it relates to on-road applications. The acquisition, although
not financially material, expands Plug Power’s knowledge and
technology base in this key sector.
"Joining Plug Power enables us to rapidly expand not only our
research, development, and manufacturing efforts, but also provide
a significant impact in the application of our commercially viable,
innovative system solutions to product in the field,” said Daniel
O’Connell, CEO, American Fuel Cell. "Plug Power is not only a known
innovator with a long-standing commitment to R&D, but the
company also has incredible traction with large organizations
seeking to identify and capitalize on creating efficiencies in
their supply chain. We’re excited to double-down on our product
innovation, as well as see first-hand the immediate benefit
companies worldwide can derive from the adoption of hydrogen fuel
cell technology as part of their efficiency and clean energy
efforts.”
Through this acquisition Plug Power will immediately have a
facility in Rochester, NY, located in the Eastman Business Park,
with all staff of AFC becoming Plug Power employees. This new
office represents an expansion of Plug Power’s operations in its
home state of New York, a presence that will continue to grow
through 2018 and beyond. With this new facility, Plug Power plans
to create more job opportunities for the people of Rochester, NY
and appreciates the continued support of the state in all its
endeavors. “Each day, we see the role that fuel cells are playing
in the increasingly electrified world evolve in a positive
direction. At Plug Power we see demand increasing each month, and
given our rich R&D legacy, we’re always looking for new
technologies and teams that can help to grow our business and
remain at the forefront of emerging fuel cell technology,” said
Andy Marsh, CEO, Plug Power. “The American Fuel Cell team is an
unmatched group of bright thinkers who understand the potential of
fuel cells in on-road applications. We’re looking forward to
working together to create a cleaner, more efficient future as
on-road applications grow, and electric fleet vehicles increasingly
become the norm.”
About Plug Power Inc. The
architect of modern hydrogen and fuel cell technology, Plug Power
is the innovator that has taken hydrogen and fuel cell technology
from concept to commercialization. Plug Power has revolutionized
the material handling industry with its full-service GenKey
solution, which is designed to increase productivity, lower
operating costs and reduce carbon footprints in a reliable,
cost-effective way. The Company’s GenKey solution couples together
all the necessary elements to power, fuel and serve a customer.
With proven hydrogen and fuel cell products, Plug Power replaces
lead acid batteries to power electric industrial vehicles, such as
the lift trucks customers use in their distribution centers.
Extending its reach into the on-road electric vehicle market, Plug
Power’s ProGen platform of modular fuel cell engines empowers OEMs
and system integrators to rapidly adopt hydrogen fuel cell
technology. ProGen engines are proven today, with thousands in
service, supporting some of the most rugged operations in the
world. Plug Power is the partner that customers trust to take their
businesses into the future. Learn more at www.plugpower.com.
Safe Harbor StatementThis communication
contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 that involve
significant risks and uncertainties about Plug Power Inc. ("PLUG"),
including but not limited to statements about PLUG's expectations
regarding growth in Europe, revenue, growth with GenKey customers
and its project financing platform. You are cautioned that such
statements should not be read as a guarantee of future performance
or results, and will not necessarily be accurate indications of the
times that, or by which, such performance or results will have been
achieved. Such statements are subject to risks and uncertainties
that could cause actual performance or results to differ materially
from those expressed in these statements. In particular, the risks
and uncertainties include, among other things, the risk that we
continue to incur losses and might never achieve or maintain
profitability; the risk that we will need to raise additional
capital to fund our operations and such capital may not be
available to us; the risk that our lack of extensive experience in
manufacturing and marketing products may impact our ability to
manufacture and market products on a profitable and large-scale
commercial basis; the risk that unit orders will not ship, be
installed and/or converted to revenue, in whole or in part; the
risk that pending orders may not convert to purchase orders, in
whole or in part; the risk that a loss of one or more of our major
customers could result in a material adverse effect on our
financial condition; the risk that a sale of a significant number
of shares of stock could depress the market price of our common
stock; the risk that negative publicity related to our business or
stock could result in a negative impact on our stock value and
profitability; the risk of potential losses related to any product
liability claims or contract disputes; the risk of loss related to
an inability to maintain an effective system of internal controls
or key personnel; the risks related to use of flammable fuels in
our products; the cost and timing of developing, marketing and
selling our products and our ability to raise the necessary capital
to fund such costs; the ability to achieve the forecasted gross
margin on the sale of our products; the risk that our actual net
cash used for operating expenses may exceed the projected net cash
for operating expenses; the cost and availability of fuel and
fueling infrastructures for our products; market acceptance of our
products, including GenDrive, GenSure and GenKey systems; the
volatility of our stock price; our ability to establish and
maintain relationships with third parties with respect to product
development, manufacturing, distribution and servicing and the
supply of key product components; the cost and availability of
components and parts for our products; our ability to develop
commercially viable products; our ability to reduce product and
manufacturing costs; our ability to successfully expand our product
lines; our ability to successfully expand internationally; our
ability to improve system reliability for our GenDrive, GenSure and
GenKey systems; competitive factors, such as price competition and
competition from other traditional and alternative energy
companies; our ability to protect our intellectual property; the
cost of complying with current and future federal, state and
international governmental regulations; risks associated with
potential future acquisitions; and other risks and uncertainties
referenced in our public filings with the Securities and Exchange
Commission (the “SEC”). For additional disclosure regarding these
and other risks faced by PLUG, see disclosures contained in PLUG's
public filings with the SEC including, the "Risk Factors" section
of PLUG's Annual Report on Form 10-K for the year ended December
31, 2017. You should consider these factors in evaluating the
forward-looking statements included in this presentation and not
place undue reliance on such statements. The forward-looking
statements are made as of the date hereof, and PLUG undertakes no
obligation to update such statements as a result of new
information.
Media Contact Kate GundryPluck
617.797.5174plugpower@pluckpr.com
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