Plug Power (Latham, N.Y.) signed a definitive agreement to acquire Frames Group B.V. (Alphen aan den Rijn, the Netherlands), a leader in turnkey systems integration for the energy sector. With over 35 years of experience, Frames designs, builds, and delivers processing equipment, separation technologies, flow control and safeguarding systems, for water and renewable energy solutions. Headquartered in the Netherlands, Frames has about 300 employees located largely in Europe and India.
Plug is building a hydrogen ecosystem by systematically adding complementary strengths and capabilities through key acquisitions, joint ventures, and other partnerships. Plug has steadily gained competency in key technology and critical supply chain areas such as fuel cell membrane electrode assemblies (MEAs), hydrogen delivery logistics and electrolyzers to deliver turnkey green hydrogen solutions for its customers. Partnerships with Renault, SK, Acciona, Fortescue Future Industries, Airbus and Lhyfe provide access and scale in markets new to Plug.
The Frames acquisition will support Plug Power’s goal to reach an installed electrolyzer capacity of three gigawatts (GW) by 2025. Plug will combine its world-class stack technology with Frames’ systems integration capabilities to deliver a range of turnkey electrolyzer solutions from one megawatt (MW) containers to 1,000 MW standalone plants.
“Frames Group delivers outstanding services cost-effectively to many of the world’s largest energy providers. We look forward to our journey together, delivering value to customers around the world through our green hydrogen solutions,” said Andy Marsh, CEO for Plug Power. “Plug Power is set to become one of the largest pure play green hydrogen ecosystem companies.”
With Frames’ long-standing roots in Europe, supported by an extensive European customer base, supply chain and manufacturing capabilities, Plug Power continues to build out and deepen its European presence. Through the Frames acquisition, organic growth, and partnerships, Plug will now have 200 employees in Europe. Set to open its new European headquarters in North Rhine-Westphalia, Germany, in early 2022, Plug has also invested in a manufacturing facility, service center, and a green hydrogen fund in Europe.
Revenue opportunities from the acquisition include an order backlog valued at approximately €100 million and a sizeable project pipeline that will generate revenues through 2023 with major on-shore and off-shore energy providers seeking to transition to renewable energies and green hydrogen.
Frames’ relationship with Plug Power goes back to 2017. “We are delighted to become part of the Plug Power organization,” said Frans Roozendaal, CEO of the Frames Group. “There is a great cultural fit and alignment between our teams, which we have developed over the years as partners. Together with the Plug Power team, we can assist our current customer base, accelerate their journeys and decarbonize their energy offerings.”
The acquisition is expected to be completed by the end of the year once all required approvals have been obtained. The transaction includes €85 million in cash and €30 million in earnouts.