Plug Power (Latham, N.Y.) and SK E&S, part of South Korea’s SK Group, announced today that the companies have formed a joint venture designed to accelerate the use of hydrogen as an alternative energy source in Asian markets. Through this initiative, the two companies will collaborate to provide hydrogen fuel cell systems, hydrogen fueling stations, electrolyzers and green hydrogen to the Korean and other Asian markets.
The two companies began working together in early 2021, when SK Group made a $1.6 billion capital investment in Plug Power and announced a strategic partnership to accelerate the expansion of the hydrogen economy throughout Asia. On October 6th, executives from Plug Power and SK E&S gathered at the SK Seorin Building for a signing ceremony.
Choo Hyeongwook, the President and Chief Executive Officer of SK E&S, said: “The establishment of the joint venture is meaningful as it secures the basis to enter the Asian market based on hydrogen related core technologies owned by Plug Power. It will provide SK E&S with a unique opportunity to build a powerful hydrogen ecosystem with Plug Power, including green hydrogen production using electrolyzer technology.”
In response, Plug Power’s Chief Executive Officer Andy Marsh, who also attended the signing, said: “With SK E&S by our side, we’re incredibly proud to bring the green hydrogen revolution to South Korea and other Asian markets. Plug Power has proven its ability to scale hydrogen infrastructure quickly, expertise which aligns perfectly with SK’s exceptional local knowledge, capabilities, and vision for a green future. Here in South Korea, we’re thrilled to be working alongside SK to create a vast tapestry of hydrogen refueling stations and key hydrogen infrastructure, which will power industries throughout South Korea and beyond, while helping governments and municipalities reach sustainability goals.”
In January 2019, the South Korea government announced the Hydrogen Economy Roadmap through 2040, with ambitious goals, including: over 5 million tons of hydrogen per year, over 6 million fuel cell EVs, 1,200 refilling stations and 15 GW of fuel cell power generation, and outlined its expectation that the cumulative economic value of its hydrogen economy will reach approximately $40 billion by 2040. Plug Power has proven its ability to scale hydrogen infrastructure quickly. In North America, the company has built a robust network of over 150 hydrogen refueling stations, which are already powering hydrogen powered fleets in numerous industries, while the company’s on-site hydrogen fuel cell technology provides resilient, reliable backup power for businesses and institutions. For Plug Power, the joint venture with SK provides a unique opportunity to establish a foothold in the Asian market with one of South Korea’s leading industrial conglomerates.
The joint venture plans to build a gigafactory in a key metropolitan area in South Korea by 2024, with mass capacity for hydrogen fuel cells and electrolyzer systems and plans to supply domestic and certain overseas markets in Asia. Over time, the joint venture also plans to assume the role of distributing liquefied hydrogen produced by SK E&S to around 100 charging stations nationwide.
SK E&S and Plug Power will own 51% and 49%, respectively, of the joint venture. Plug Power and SK will hold an equal number of board seats, and any material decisions must be made unanimously.