Amazon has recently unveiled plans to venture into hydrogen fuel production at its fulfillment centers, signaling a strategic move towards sustainable energy solutions. In collaboration with hydrogen technology company Plug Power, Amazon has initiated the installation of the first electrolyzer, a device designed to split water molecules and produce hydrogen, at its fulfillment center located in Aurora, Colorado.

The primary purpose of this electrolyzer is to generate fuel for approximately 225 forklift trucks operating at the site. However, Plug Power asserts that the equipment has the capacity to provide fuel for up to 400 hydrogen fuel cell-powered forklifts. This initiative marks Amazon’s inaugural attempt to produce hydrogen on-site, with indications suggesting a potential expansion of such efforts in the future.

As announced in a recent press release by Asad Jafry, Amazon’s Director of Global Hydrogen Economy, the on-site production of hydrogen is expected to enhance energy efficiency at specific locations and types of facilities. Jafry emphasized the importance of hydrogen in Amazon’s broader strategy to achieve operational decarbonization by 2040.

Hydrogen is positioned as a cleaner-burning alternative to traditional fossil fuels, aligning with Amazon’s sustainability goals for its warehouses. However, the overall environmental impact of hydrogen utilization depends on the development of the supply chain and regulatory frameworks by policymakers and industry players.

The combustion of hydrogen produces water vapor instead of greenhouse gas emissions, a characteristic that has garnered attention from companies and governments striving to meet climate objectives. However, challenges persist in the hydrogen production process, primarily driven by the current reliance on fossil fuels, specifically through the reaction between steam and methane. This process results in the release of carbon dioxide, contributing to global warming. Additionally, methane leaks during production pose a significant environmental concern, given methane’s potency as a greenhouse gas.

Plug Power aims to address these challenges through the use of electrolyzers, which utilize electricity to split water into hydrogen and oxygen. When powered by renewable energy sources such as wind or solar, this method is referred to as green hydrogen. Despite its pollution-free attributes, green hydrogen production remains more expensive than conventional methods. The Biden administration is actively working to incentivize clean hydrogen production through tax incentives and substantial federal funding for clean hydrogen production hubs.

Since 2016, Plug Power has delivered over 17,000 fuel cells for forklifts to more than 80 fulfillment centers across North America. While most of the hydrogen for these fuel cells is currently produced elsewhere and transported via trucks, the on-site production model adopted by Amazon eliminates tailpipe pollution associated with transportation.

However, the environmental impact of Amazon’s hydrogen production at the Colorado fulfillment center is not entirely eliminated. The electrolyzer is currently connected to the power grid, where fossil fuels still account for approximately 60 percent of the U.S. electricity mix. Achieving truly green hydrogen would necessitate Amazon’s commitment to powering the electrolyzer with renewable energy. Although the company is exploring the possibility of integrating renewable energy on-site, a specific timeline for implementation is yet to be established. Despite the challenges, Amazon has set ambitious sustainability goals, aiming to match its electricity use with renewable energy by 2025 and achieve net zero greenhouse gas emissions by 2040, as declared in its 2019 commitment, despite a recent increase in its carbon footprint.

By Impact Lab