Amazon has revealed plans to embark on the production of hydrogen fuel within its fulfilment centres, marking a significant step in the retail giant’s efforts to decarbonize its operations. In collaboration with hydrogen company Plug Power, Amazon has initiated the installation of the first electrolyzer, a sophisticated piece of equipment capable of splitting water molecules to yield hydrogen. This development is exemplified by the establishment of the initial electrolyzer at a fulfilment centre situated in Aurora, Colorado.
The primary function of the electrolyzer will be to generate fuel to power approximately 225 forklift trucks deployed at the fulfilment centre. Remarkably, Plug Power asserts that the electrolyzer can fuel up to 400 hydrogen fuel cell-powered forklifts, thereby showcasing the scalability of this endeavour. This foray into on-site hydrogen production signifies a strategic move by Amazon to make its operations more energy-efficient in certain locations and types of facilities.
Asad Jafry, Amazon’s Director of Global Hydrogen Economy, articulated the significance of on-site hydrogen production, emphasizing its potential to enhance energy efficiency in specific locations and facility types. The use of hydrogen is deemed crucial in Amazon’s broader commitment to achieving carbon neutrality in its operations by the year 2040. Hydrogen is increasingly viewed as a cleaner-burning alternative to traditional fossil fuels, and its adoption aligns with Amazon’s sustainability goals, particularly in the context of its vast network of warehouses and fulfilment centres.
Hydrogen’s environmental benefits are rooted in its combustion process, which produces water vapour instead of greenhouse gas emissions. However, the overall environmental impact of hydrogen adoption depends significantly on the sustainability of its supply chain. Notably, one of the challenges in mainstream hydrogen production lies in the conventional methods that often involve fossil fuels, resulting in the release of planet-heating carbon dioxide.
In addressing this challenge, Plug Power employs electrolyzers to produce hydrogen, bypassing the use of methane and opting for a cleaner, electricity-driven process. This process, referred to as “green hydrogen” when powered by renewable sources such as wind or solar energy, aligns with Amazon’s commitment to cleaner energy solutions. Despite the potential benefits, the widespread adoption of green hydrogen faces economic challenges, primarily related to the higher cost compared to conventional hydrogen production methods.
While Amazon’s move into on-site hydrogen production presents a significant step forward, challenges remain. The electrolyzer, which currently contributes to the fulfilment centre’s hydrogen needs, is connected to the power grid, where fossil fuels still constitute a substantial portion of the energy mix. Achieving truly green hydrogen production at the facility would require ensuring that the electrolyzer operates on renewable energy.
Amazon, cognizant of its broader environmental commitments, is exploring options to pair the electrolyzer with on-site renewable energy sources. The company aims to achieve a comprehensive transition to renewable energy, targeting the purchase of enough renewable energy to match the electricity consumption of its operations by 2025. Additionally, Amazon has committed to achieving net-zero greenhouse gas emissions by 2040. However, the company’s recent sustainability report indicates a 39 per cent growth in its carbon footprint since 2019, highlighting the ongoing challenges and complexities in realizing ambitious environmental goals.
