Reportedly, Plug Power Inc. (PLUG) and SK Group one of the leading South Korean business groups, announced the completion of the $1.6 billion capital investment partnership aimed at accelerating hydrogen as an alternative energy source in Asian markets. The executives of SK and Plug Power had a virtual deal closing ceremony on Feb 24th to celebrate the new partnership, including a plan to form a joint venture company in Asia. SK Group owns approximately 9.6% of the issued and outstanding shares of Plug Power’s common stock following the investment.
The partnership represents a powerful team to accelerate the growth of the hydrogen economy in Asian markets. SK Group brings in significant presence and leadership throughout Asia’s energy industry. Plug Power provides global leadership in fueling stations, hydrogen fuel cell systems, and green hydrogen generation.
“Plug Power has been aggressively building out the hydrogen economy in North America, and it is clear that our partner, SK Group, shares the same vision to build out a big hydrogen economy in Asia,” stated Andy Marsh, CEO of Plug Power.
In January 2019, the South Korean government announced its ambitious goals with the Hydrogen Economy Roadmap through 2040 including, over 6MM fuel cell EVs, over 5MM tons of hydrogen per year, 1,200 refilling stations, and 15 GW of fuel cell power generation, and also expects the cumulative economic value of its hydrogen economy to reach $40 billion by 2040. Plug Power has proven to spread hydrogen business in North America as a global leader in the hydrogen economy. SK and Plug Power are set to form a joint venture company to build the hydrogen ecosystem in Korea, in near future and gradually make inroads into Asian markets.
The purpose of the Asia JV is to establish a gigafactory in Korea by 2023 to produce fuel cells and electrolyzers and introduce them in broader Asian markets with a substantial cost reduction. SK Group is the third-largest conglomerate in South Korea committed to building sustainable green energy value chains in Korea and Asian markets. Its largest businesses primarily involve energy industries.
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