The world's largest consumer packaged goods company is buying hydrogen fuel cells to power more than 200 electric forklifts in the firm's first exploration of battery-replacement technology. Terms were not disclosed.

Proctor & Gamble Co (P&G) approached Plug Power Inc of Latham, New York about two years ago as part of an extensive due diligence analysis of fuel cell potential.

Subsequently, P&G selected Plug Power's GenDrive fuel cell products for targeted use in P&G manufacturing facilities in Oxnard, California; Alexandria, Louisiana; and Greensboro, North Carolina.

The three plants are among P&G sites needing to update forklift fleets. P&G has 39 manufacturing facilities in the US, and others elsewhere.

"More facilities may come online in the future," says Jeff LeRoy, P&G external relations manager.

In using fuel cell-equipped forklifts, P&G aims in the selected facilities to reduce its carbon footprint - possibly emitting up to 60% fewer greenhouse gases - and gain a favourable return on investment.

P&G utilises multiple classes of materials handling equipment from a variety of forklift manufacturers. "We are building units to replace anything from small ride-on pallet jacks to large 12,000 lb. (5,400 kg) lift trucks," LeRoy says.

"By deploying GenDrive fuel cell products at multiple facilities, P&G will lessen its environmental impact while realising increased productivity, reduced operating costs and better predictability of its fleet performance," says Andy Marsh, Plug Power chief executive officer.

Under P&G's control, "deployment is scheduled for the first quarter of 2012", says Reid Hislop, Plug Power vice president of marketing and investor relations.

Plug Power has shipped more than 1,500 GenDrive units to materials handling customers. The units have accumulated more than five million hours of runtime.

Cincinnati-based P&G recorded profit of USD11.8 billion on 2010 sales of USD82.6 billion. P&G's two global business units focus on the beauty, grooming and household care markets.