Driving ahead in pursuit of growing the hydrogen economy, Plug Power (PLUG -5.35%) is partnering with BAE Systems (BAES.Y 0.15%) to develop hydrogen-powered electric buses for the North American market. Plug Power announced today that it will provide its ProGen fuel cell engines to BAE Systems, which will incorporate them into its smart electric-drive systems. The integrated powertrains will then be delivered to original equipment manufacturers of heavy-duty transit buses in North America. Additionally, the two companies will work together to provide hydrogen infrastructure for customers.
Plug Power CEO Andy Marsh said, "We're excited to work with BAE Systems, a pioneer in clean energy solutions for sustainable transportation, to bring the benefits of green hydrogen to transit systems in North America."
Marsh added, "This strategic partnership will play an instrumental role in advancing our on-road applications strategy and delivering new growth opportunities that help meet our year-end 2025 goals, including annual production of 500 tons of green hydrogen daily."
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The deal that Plug Power has entered into with BAE Systems follows another deal, which the company announced a few months ago, indicating its interest in expanding beyond its core competency, material-handling equipment. In January, Plug Power signed a memorandum of understanding with Groupe Renault to form a joint venture to bring fuel cell technology to light commercial vehicles in Europe.
Plug Power's interest in a greater presence in vehicles is consistent with management's strategy for achieving $1.2 billion in revenue and $200 million in operating income by 2024.
