A strategic partnership has been announced between United States-based hydrogen fuel cell provider Plug Power and the South Korean SK Group to promote hydrogen-based technologies in the Asian Market. Accordingly, SK Group will be investing $1.5 billion to acquire a 9.9 per cent pro forma ownership stake in Plug Power, thereby forming a joint venture company in South Korea. Plug SK Group’s US subsidiary will purchase around 51.4 million shares for $29.28 per share, and the transaction is expected to close in the first quarter of 2021.
The partnership is expected to offer quick strategic benefits to Plug power to expedite its expansion into Asian markets. By 2022, the partnership is intended to result in a formal joint venture. Given the complementary nature of this partnership, rapid growth and significant revenue generation is expected, said the CEO of Plug Power.
Plug Power had also raised $ 1 billion in November 2020 to develop five regional green hydrogen facilities in the United States. In May 2020, the company also launched a convertible green bond offering in the United States, the net proceeds of which were to fund initiatives related to green hydrogen strategy.
The government of South Korea in its Hydrogen Economy Roadmap until 2040, aims to produce over 500 million metric tons of hydrogen annually. Additionally, the country looks to develop 6MM fuel cell electric vehicles supported by 15 GW of fuel cell power generation capacity and 1,200 refilling stations. The government targets developing a green hydrogen economy with a total value of $40 billion.