(Latham/USA) – The Korean SK Group and the US fuel cell manufacturer Plug Power Inc. want to promote the use of hydrogen as an alternative energy source in the Asian markets as part of a strategic partnership. Plug Power and SK Group will offer hydrogen fuel cell systems, hydrogen fueling stations and electrolyzers for the Korean and Asian markets. The strategic direction is based on green hydrogen.
Don't mess, just plop
The SK Group is investing 1,5 billion dollars (1,23 billion euros) in Plug Power. The companies will also formally establish a joint venture in South Korea in 2022.
The plan calls for a U.S. subsidiary of SK Group to raise the money by purchasing 51,4 million common shares at a price of $29,2893 per share. This is the average value of the 5 trading days on the stock exchange preceding January 30th (VWAP, Volume Weighted Average Price). According to the company, SK is acquiring a stake of around 9,9 percent in Plug Power. The transaction is expected to close in the first quarter of 2021.
Plug Power wants to gain a foothold in Asia
Plug Power sees the project as an attractive opportunity to gain a foothold in this market with one of South Korea's leading industrial conglomerates. South Korea announced a roadmap for the hydrogen economy in January 2019. By 2040, the country is expected to produce more than five million tons of hydrogen per year. 1.200 filling stations would then supply six million fuel cell vehicles, and electricity would also be generated in fuel cell power plants with an output of 15 gigawatts. The government expects the economic value of the hydrogen economy to cumulatively reach $2040 billion by 40.
In any case, Plug Power's coffers appear to be well-stocked for investments: the company had already acquired a billion dollars from investors in November. In September, Plug Power announced its market entry in Japan (we reported).
deep link
https://www.ir.plugpower.com/Press-Releases/Press-Release-Details/2021/Plug-Power-and-South-Korean-SK-Group-to-Form-a-Strategic-Partnership-to-Accelerate-Hydrogen-Economy-Expansion-in-Asian-Markets-Plug-Power-to-Receive-1.5-Billion-Strategic-Investment-From-SK-Group/default.aspx
Photos
Plug Power also wants to gain a foothold in Korea / © Plug Power Inc.
