Hydrogen fuel-cell maker Plug Power Inc. will supply 10,950 tons per year of liquid green hydrogen to power Amazon.com Inc.'s transportation and building operations starting in 2025.

Amazon officials said in an Aug. 25 news release that the green hydrogen supplied by Plug Power will replace diesel and other fossil fuels and supply enough annual power for 30,000 forklifts or 800 heavy-duty trucks used in long-haul transportation.

Green hydrogen is produced by splitting water into hydrogen and oxygen using zero-carbon electric power.

Financial terms of the green hydrogen agreement were not disclosed, but Plug Power said the deal will help it achieve a revenue goal of $3 billion by 2025. Additionally, Plug issued an Amazon subsidiary a warrant to purchase up to 16,000,000 shares of Plug 's common stock. The exercise price for the first 9,000,000 shares is $22.9841 apiece. The exercise price for the remaining 7,000,000 shares will depend on Plug's share price after the initial warrant shares are vested.

Amazon intends to vest the warrant in full if it spends $2.1 billion on Plug products over the seven-year term of the warrant.

"Amazon is proud to be an early adopter of green hydrogen given its potential to decarbonize hard-to-abate sectors like long-haul trucking, steel manufacturing, aviation, and ocean shipping," said Kara Hurst, vice president of worldwide sustainability at Amazon, in a statement.

Andy Marsh, CEO of Plug Power, said in a statement that securing the deal with Amazon affirms its "multi-year investment and strategic expansion into green hydrogen."

"We ... look forward to possibly expanding our relationship through the use of other hydrogen applications, such as fuel-cell electric trucks and fuel-cell power generation stations that could provide electricity to Amazon buildings and the deployment of electrolyzers in fulfillment centers," Marsh said.

The deal adds to a string of recent climate-related investments by Amazon. The company recently invested in SunFire GmbH and Electric Hydrogen Co., which are developing electrolyzer technology to increase green hydrogen production.

The investments are part of the Climate Pledge Fund, Amazon's $2 billion venture investment program that supports the development of sustainable technologies and services. Amazon aims to achieve net-zero carbon emissions by 2040.