SK Group, full-scale expansion of hydrogen business … SK E&S’spearhead’

Invested KRW 1.6 trillion in Plug Power Inc, a hydrogen manufacturer in the US

[투데이에너지 박병인 기자]SK Co., Ltd. and SK E&S invested 1.6 trillion won in Plug Power Inc., a hydrogen fuel cell and charging solution company, and became an anchor in earnest to expand the hydrogen business.

SK announced that its subsidiary Plutus Capital NY, Inc. and SK E&S Americas, Inc., a subsidiary of SK E&S, will invest 1.6 trillion won in Plug Power, a US hydrogen company, at a 50:50 ratio.

Plug Power of the United States, which SK invested this time, is a hydrogen manufacturing and distribution company established in 1997, and possesses key technologies related to hydrogen such as liquefied hydrogen plants, construction of hydrogen charging stations, and fuel cells for vehicles.

Plug Power, a global leader in the hydrogen economy, has been verified for its ability to expand hydrogen business in North America, and we believe that the partnership with SK, one of Korea’s leading companies, is a good opportunity created in a timely manner to establish a foothold in this market.

Through this investment, SK Group and Plug Power will maintain a cooperative relationship to build a domestic hydrogen infrastructure. The two companies will promote the supply of hydrogen fuel cell systems, hydrogen fueling stations, and electrolyzers throughout the Asian market including Korea.

SK Group has considerable influence and leadership within the Asian energy industry, and has set a strategic direction of portfolio green transformation through hydrogen economy. The combination of Plug Power’s leadership in hydrogen fuel cell systems, charging stations, and green hydrogen power generation is expected to form a strong team capable of promoting the growth of the hydrogen economy in the Asian market.

Earlier, SK Group announced the expansion to the hydrogen business. Since then, SK E&S was fully prepared for expansion into the hydrogen business, such as appointing a new CEO Hyung-wook Choo and converting it into a joint representative system.

SK Group, which took its first step in the hydrogen business with this investment, is expected to expand its hydrogen business in the future, taking the lead in its affiliate SK E&S.

It is analyzed that SK, one of the largest companies in the domestic energy industry, has established a leap forward for Korea to take the lead in the hydrogen society in the future as countries around the world are taking a strong policy to realize a hydrogen economy.

Andy Marsh, CEO of Plug Power, said, “SK Group has a solid strategy for the development of the hydrogen economy in Korea as well as other regions. This partnership with SK Group will help Plug Power accelerate its expansion in the Asian market. It will bring strategic benefits.”

In addition, he said, “It will lead to the establishment of a formal joint venture (JV) in 2022. This partnership, which has complementary strengths, is expected to achieve rapid business growth and huge profit creation through a joint venture that is part of our 2024 plan.” Said.

SK E&S CEO Choo Hyung-wook said, “Plug Power has accumulated decades of experience as a leading company in the hydrogen industry and has a stable business model.” “This partnership between Plug Power and SK provides an important and stable opportunity in the hydrogen industry in the future. We will create value to secure and contribute to society.”

In addition, CEO Chu said, “SK Group is actively investing in the ESG field, and Plug Power will be a representative example of this strategy.”

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