SK Group to invest $1.5 billion in hydrogen mobility
Hydrogen fuel cell maker Plug Power and South Korea’s SK Group will form a strategic partnership to accelerate hydrogen as an alternative energy source in Asian markets.
Through a $1.5 billion investment, Plug Power and SK Group intend to provide hydrogen fuel cell systems, hydrogen fueling stations, and electrolyzers to the Korean and broader Asian markets.
In January 2019, the South Korea government announced the Hydrogen Economy Roadmap through 2040, with ambitious goals – over 5 million tons of hydrogen per year, over 6 million fuel cell EVs, 1,200 refilling stations and 15 GW of fuel cell power generation, and expects the cumulative economic value of its hydrogen economy to reach $40 billion by 2040.
“The current relationship with SK Group offers immediate strategic benefits to Plug Power to accelerate its expansion into Asian markets - and is intended to result in a formal joint venture by 2022. Due to the complementary strengths in this partnership, we expect rapid growth and significant revenue generation from the joint venture that are incremental to our 2024 plan,” said Andy Marsh, CEO for Plug Power.
Plug Power has deployed over 40,000 fuel cell systems for e-mobility, more than anyone else in the world, and has become the largest buyer of liquid hydrogen, having built and operated a hydrogen highway across North America.
“This partnership between Plug Power and SK will bring significant and solid opportunities in the hydrogen industry, creating value to society,” said Hyeongwook Choo, Head of Hydrogen Business Development Center of SK Holdings.
Under the terms of the investment, a US subsidiary of SK Group will make a US$1.5 billion investment in Plug Power by acquiring approximately 51.4 million shares of common stock at a price of US$29.2893 per share.
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