Plug Power and SK Group have announced plans to form a joint venture company in South Korea to support the rapidly growing Asian hydrogen market.
The two companies yesterday (6th Jan) unveiled their major commitment, stating plans to provide hydrogen fuel cell systems, hydrogen fuelling stations and electrolysers to the Korean and broader Asian markets.
Helping to push forward such efforts, SK Group will make a $1.5bn strategic investment in the New York-based hydrogen fuel cell solutions specialist, as well as provide its significant knowledge and presence in the market.
Commenting on the partnership, Andy Marsh, CEO of Plug Power, said, “SK Group has an established strategy for building out the hydrogen economy in South Korea and beyond.”
“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.”
In a statement, the companies said SK Group’s presence and leadership throughout Asia’s energy industry and its strategic direction on portfolio transformation to green via hydrogen, paired with Plug Power’s leadership in hydrogen fuel cell systems, fuelling stations and green hydrogen generation will result in a powerful team.
Speaking on the collaboration, Hyeongwook Choo, Head of Hydrogen Business Development Centre of SK Holdings, said, “Plug Power is a leading player in the hydrogen industry with decades of experiences and a distinguished business model.”
“This partnership between Plug Power and SK will bring significant and solid opportunities in the hydrogen industry, creating value to society.”
“SK Group is focusing and actively investing into the ESG sector and Plug Power would be one of our splendid footprints within this strategy.”
Both the joint venture and SK’s investment will help push forward the South Korean Hydrogen Economy Roadmap which looks forward to 2040, outlining ambitious goals such as to have 1,200 hydrogen stations and 15GW of fuel cell power generation.