Plug Power and SK Group Complete $1.6 Billion Capital Investment to Build Hydrogen Economy in Asian Markets
February 25 2021 - 7:05AM
Plug Power Inc. (NASDAQ: PLUG), a leading provider of turnkey
hydrogen solutions building the global green hydrogen economy, and
SK Group, one of the leading South Korean business groups, announce
the completion of the $1.6 billion capital investment to partner in
accelerating hydrogen as an alternative energy source in Asian
markets. In celebration of kicking off the new partnership,
including a plan to form a joint venture company in Asia, the
executives of SK and Plug Power had a virtual deal closing ceremony
on the 24th.The companies previously announced entering into a
definitive agreement in connection with the investment on January
6, 2021. SK Group brings significant presence and leadership
throughout the Asia’s energy industry and a commitment to a
sustainable future. Plug Power provides our global leadership in
hydrogen fuel cell systems, fueling stations and green hydrogen
generation. This partnership represents a powerful team to
accelerate the growth of the hydrogen economy in Asian markets.
In January 2019, the South Korea government announced the
Hydrogen Economy Roadmap through 2040, with ambitious goals,
including: over 5MM tons of hydrogen per year, over 6MM 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. Plug Power has
proven its ability to scale a hydrogen business in North America as
a global leader in the hydrogen economy. The opportunity to partner
with SK presents an attractive and timely opportunity to establish
a foothold in this market with one of South Korea’s leading
industrial conglomerates.
“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,” said Andy Marsh, CEO of Plug Power.
“SK will maximize the synergy between the two companies in the
global hydrogen market by combining SK's domestic and foreign
energy infrastructure, business capabilities, and plug-power's
world-class hydrogen business portfolio and technology,” said
Hyeongwook Choo, President & CEO of SK E&S.
SK Group, the third largest conglomerate in South Korea with its
largest businesses primarily involved in energy industries, is
committed to build sustainable green energy value chains in Korea
and Asian markets. As such, SK Group is a highly attractive
strategic capital investor for Plug Power’s established strategy
for building out the hydrogen economy and accelerating expansion
into Asian markets.
Going forward, SK and Plug Power are set to form a joint venture
company to build the hydrogen ecosystem in Korea and jointly make
inroads into Asian markets. The goal of the Asia JV is to establish
a gigafactory in Korea by 2023 to produce fuel cells and
electrolyzers, and later provide them in broader Asian markets with
a substantial cost reduction.
SK Group owns approximately 9.6% of the issued and outstanding
shares of Plug Power’s common stock immediately following the
investment. This investment represents the largest U.S. clean
energy PIPE in the last 20 years (based on the PrivateRaise PIPE
database for transactions that have closed and includes common
stock, preferred stock, convertible preferred stock and convertible
debt).
About Plug Power
Plug Power is building the hydrogen economy as the leading
provider of comprehensive hydrogen fuel cell turnkey solutions. The
Company’s innovative technology powers electric motors with
hydrogen fuel cells amid an ongoing paradigm shift in the power,
energy, and transportation industries to address climate change and
energy security, while meeting sustainability goals. Plug Power
created the first commercially viable market for hydrogen fuel cell
technology. As a result, the Company 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. Plug Power
delivers a significant value proposition to end-customers,
including meaningful environmental benefits, efficiency gains, fast
fueling, and lower operational costs. Plug Power’s
vertically-integrated GenKey solution ties together all critical
elements to power, fuel, and provide service to customers such as
Amazon, BMW, The Southern Company, Carrefour, and Walmart. The
Company is now leveraging its know-how, modular product
architecture and foundational customers to rapidly expand into
other key markets including zero-emission on-road vehicles,
robotics, and data centers. Learn more at www.plugpower.com.
Safe Harbor StatementThis communication
contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 that involve
significant risks and uncertainties about Plug Power Inc.("PLUG"),
including but not limited to statements about PLUG's expectations
regarding the success of the strategic partnership with SK
Holdings, including the alliance and opportunities in the Asian
market, the opportunity to establish a foothold in the hydrogen
economy, and the growth and expansion of the hydrogen economy in
Asian markets. You are cautioned that such statements should not be
read as a guarantee of future performance or results, and will not
necessarily be accurate indications of the times that, or by which,
such performance or results will have been achieved. Such
statements are subject to risks and uncertainties that could cause
actual performance or results to differ materially from those
expressed in these statements. For a further description of the
risks and uncertainties that could cause actual results to differ
from those expressed in these forward-looking statements, as well
as risks relating to the business of PLUG in general, see PLUG’s
public filings with the Securities and Exchange Commission,
including the “Risk Factors” section of PLUG’s Annual Report on
Form 10-K for the year ended December 31, 2019 and Quarterly
Reports on Form 10-Q for the quarters ended March 31, 2020, June
30, 2020 and September 30, 2020. Readers are cautioned not to place
undue reliance on these forward-looking statements. The
forward-looking statements are made as of the date hereof, and PLUG
undertakes no obligation to update such statements as a result of
new information.
SOURCE: PLUG POWER
Media Contact
Ian Martorana
The Bulleit Group
plugpowerpr@bulleitgroup.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/be393b7c-3425-4a75-8492-e322b3b85b8c
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