LATHAM, N.Y., April 5, 2011 (GLOBE NEWSWIRE) -- Plug Power Inc. (Nasdaq:PLUG), a leader in providing clean, reliable energy solutions, today announces that WinCo Foods LLC will use 184 GenDrive® fuel cell units to power its electric lift truck fleet at its 800,000 sq. ft. grocery distribution center in Modesto, CA. Plug Power will provide WinCo with:
- 93 class-3 GenDrive units to operate pallet jacks
- 38 class-2 GenDrive units to operate stand-up counterbalance trucks
- 53 class-2 GenDrive units to operate European-style moving mast lift trucks
WinCo will pay for the systems through a five year lease with Somerset Capital Group. Somerset was identified as Plug Power's global customer lease provider for GenDrive fuel cell units in November, 2010. WinCo is the second customer to take advantage of the strategic arrangement put in place to leverage Somerset's leasing capabilities to drive market penetration for GenDrive.
This transaction with WinCo Foods marks Plug Power's first large grocery installation in California. WinCo moves produce, dry and freezer goods at their facility, a task which will be made more productive thanks to the constant power provided by GenDrive during an entire shift. For WinCo, this conversion from lead-acid batteries will mean increases in productivity, as well as a significant reduction in grid-supplied energy use, where electricity charges are in excess of $.10 per kW-hr.
At the same time, the GenDrive units being developed for WinCo's European-style moving mast lift trucks will offer Plug Power a segue into the European material handling industry with a reliable product. The material handling industry in Europe is approximately a $5.7B USD market and provides a path for expansion for Plug Power.
"California is an important state for Plug Power to aggressively prove the commercial viability of GenDrive because of the high energy costs currently absorbed by our customers," said Andy Marsh, CEO at Plug Power. "We can help our customers save millions of dollars over the life of these products by converting their lift truck fleet power solutions to GenDrive fuel cells."
"WinCo Foods appreciates the opportunity to utilize the GenDrive fuel cells which will reduce our labor costs while powering our equipment in a more environmentally conscious way," said Michael Read, WinCo Foods spokesman. "We very much appreciate the teamwork displayed by Plug Power and Somerset to meet our needs and to make this conversion as efficient as possible."
About Plug Power Inc.
The architects of modern fuel cell technology, Plug Power revolutionized the industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints. Long-standing relationships with industry leaders forged the path for our key accounts, including Wegmans, Whole Foods, and FedEx Freight. With more than 1,000 units in the field and over 2 million hours of runtime, Plug Power manufactures tomorrow's incumbent power solutions today. Visit us at www.plugpower.com.
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Plug Power Inc. Safe Harbor Statement
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to expectations regarding revenues and product orders and shipments for 2011. These statements are based on current expectations that are subject to certain assumptions, risks and uncertainties, any of which are difficult to predict, are beyond our control and that may cause our actual results to differ materially from the expectations in our forward-looking statements including, but not limited to: the risk that we continue to incur losses and might never achieve or maintain profitability, the risk that the additional capital we expect we will need to raise to fund our operations beyond the first quarter of 2012 may not be available; our lack of extensive experience in manufacturing and marketing products may impact our ability to manufacture and market products on a profitable and large-scale commercial basis; the risk that unit orders will not ship, be installed and/or converted to revenue, in whole or in part; the risk that pending orders may not convert to purchase orders, in whole or in part; the risk that our continued failure to comply with NASDAQ's listing standards may severely limit our ability to raise additional capital; the cost and timing of developing, marketing and selling our products and our ability to raise the necessary capital to fund such costs; the ability to achieve the forecasted gross margin on the sale of our products; the actual net cash used for operating expenses may exceed the projected net cash for operating expenses; the cost and availability of fuel and fueling infrastructures for our products; market acceptance of our GenDrive systems; our ability to establish and maintain relationships with third parties with respect to product development, manufacturing, distribution and servicing and the supply of key product components; the cost and availability of components and parts for our products; our ability to develop commercially viable products; our ability to reduce product and manufacturing costs; our ability to successfully expand our product lines; our ability to improve system reliability for our GenDrive systems; competitive factors, such as price competition and competition from other traditional and alternative energy companies; our ability to protect our intellectual property; the cost of complying with current and future federal, state and international governmental regulations; and other risks and uncertainties discussed under "Item IA-Risk Factors" in our annual report on Form 10-K for the fiscal year ended December 31, 2010, filed with the Securities and Exchange Commission ("SEC") on March 31, 2011, and the reports we file from time to time with the SEC. Plug Power does not intend to, and undertakes no duty to update any forward-looking statements as a result of new information or future events.
CONTACT: Media Contact: Reid Hislop Plug Power Inc. Phone: (518) 782-7700 ext. 1360 Investor Relations Contact: Cathy Yudzevich Plug Power Inc. Phone: (518) 782-7700 ext. 1448