Plug Power Inc is working with grocery retailer Kroger Co to install 161 GenDrive fuel cells on new and used materials handling equipment, mostly from Crown Equipment Corp, at a Kroger food distribution centre in Compton.

Plug Power and Kroger began discussions about two years ago. Implementation should begin in October or November.

The order includes four Class 1 units for sitdown counterbalance trucks, 42 Class 2 units for reach trucks and 115 Class 3 units for pallet trucks.

A strategic hydrogen fueling infrastructure will place a suitable number of compact dispensers throughout the facility. No hydrogen gas supplier has been selected.

Plug Power, Kroger and Crown will collaborate on the installations and arrange for training on the use and service of the GenDrive fuel cells.

The Compton centre handles distribution to certain territories for two Kroger brands: the Ralphs Grocery Co supermarkets in California and the Food 4 Less/Foods Co warehouse stores in California, Nevada, Indiana and Illinois.

"Kroger tested our GenDrive product and saw clear benefits to its operations which led them to engage with Plug Power on a full conversion of their facility," says Andy Marsh, Plug Power president and chief executive officer.

Plug Power of Latham, New York began beta trials of its GenDrive fuel cells in 2006, commercialised the product in 2007 and, so far, has shipped 1,200 units for use on material handling equipment. The GenDrive fuel cells have accumulated more than 2.5 million hours of runtime.

Cincinnati, Ohio-based Kroger employs more than 338,000 associates and operates 2,449 supermarkets and multi-department stores in 31 states under two dozen local banner names. In addition to the California site, Kroger has 16 other distribution centres in the US.