Plug Power Inc (NASDAQ:PLUG) made an announcement mid this week that it has successfully shipped the first production of ProGen fuel-cell engines purposed to be used in electric delivery vehicles. This announcement signifies the initiative of diversification of products by this N.Y-based firm, outside material-handling market.
A huge target of Chinese market
Plug Power informed the public that its most important market to this latest electric vehicle technology is China. China is in an active driving of fuel cell and adoption of hydrogen. The engines hence serve as a viable solution in the country.
The company CEO, Andy Marsh, has hence spent long periods in the past year in China. This made it possible for signing of deals between the government and the company. As a result, China intends to invest a whopping $100 billion in fuel-cell energy technology through 2030.
Plug Power CEO noted that the electrification of the auto market is undeniable. He also said that a range anxiety to those who consider its adoption was eliminated by the new technology. This range anxiety being that the vehicle may not make it to the next charge opportunity or have sufficient range for the application.
Plug Power extended reach
The company has clarified that the new fuel-cell engines will extend its reach into on-road electric vehicle market. This will be a huge boost to its served market for the fuel-cell products and fueling stations.
The ProGen engines will therefore enhance electric-vehicle range. This may serve as a viable solution for a wide range of applications that includes delivery of parcels and service trucks, municipal and government fleets, taxis and port vehicles.
ProGen first deliveries are planned to be used as range extenders in FedEX Corp.’s (FDX) electric delivery vans in the greater Los Angeles area, doubling the vehicle’s range. It is expected that in the second quarter of the year, this engine shipments will be used in delivery vans in China.
The shipments to China will also be utilized for on-road trials and certification. The engines will be another great breakthrough by the company in providing solutions that change the way the world moves.