A family of GenDrive units

Plug Power Inc is deploying its first GenKey site in Pottsville, Pennsylvania for a site of Wal-Mart Stores Inc.

The fuel cell technology provider says it had USD174 million in cash on its balance sheet as of 14 May and intends to leverage ways to boost revenue and margins through strategic investments in areas such as stack development. Plug Power received net proceeds of approximately USD116.3 million from a public offering completed in April.

The cash reserve is critical. Plug lost USD75.9 million on sales of USD5.57 million for the first quarter ended 31 March. That compares with a loss of USD8.58 million on sales of USD6.45 million in 2013's corresponding period.

Revenue for the recent quarter included USD3.16 million from product sales, USD2.07 million from services and USD346,000 from contract research and development work.

"Plug Power has closed nine GenKey deals, eight of them in the first quarter of 2014 - including Kroger, Volkswagen and a milestone deal with Walmart for over 1,700 GenDrive units at six sites," says Andrew Marsh, Plug Power president and chief executive officer.

GenKey combines together GenDrive fuel cell units, GenFuel infrastructure and hydrogen-molecule and GenCare service contracts to simplify the fuel-cell transition for a customer.

For the turnkey Walmart Pottsville installation, Plug Power has shipped more than 270 GenDrive fuel cell units, of which almost 100 units had been commissioned as of 14 May.

"The outdoor infrastructure is nearly complete," Marsh notes. "In just weeks, the concrete pad has been poured, the outdoor liquid tank and skids have been placed, the liquid tank has been purged and slow filled, and the skid inter-connector is being made in preparation for fills and leak checks." The installation includes four indoor fuel dispensers.

Marsh says the entire GenFuel infrastructure was completed in less than 13 weeks from receipt of order.

Two additional Walmart sites - including one in Johnstown, Pennsylvania - are scheduled to be brought on line during 2014's third quarter. "We expect to ship another 500 GenDrive units," Marsh reports.

The initial GenKey installations for Kroger Co are slated for Stapleton, Colorado and Louisville, Kentucky.

Soon, Plug Power will begin constructing the GenFuel infrastructure at the Chattanooga, Tennessee facility of Volkswagen Group of America. Volkswagen will start with 45 GenDrive-powered forklifts.

In April, Plug Power signed a memorandum of understanding with Hyundai Hysco in South Korea to create a joint venture that will develop, manufacture and sell hydrogen fuel sales throughout Asia using Hyundai's advanced stack plate technology.