Plug Power, SK & ES form JV to accelerate hydrogen economy in Asia

Companies will collaborate to provide hydrogen fuel cell systems, hydrogen fueling stations, electrolyzers and green hydrogen to Korea and other Asian markets.

Plug Power Inc., a leading provider of turnkey hydrogen solutions for the global hydrogen economy, and SK E&S, part of South Korea’s SK Group, 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, according to a company’s press release.

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, said the companies.

SK E&S and Plug Power 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.

In January 2019, the South Korea government announced the Hydrogen Economy Roadmap through 2040, with 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.