‘Plug Power’ is the top 3 technology leading company in the US… SK to secure 9.9% stake as the largest shareholder
Ambitious to build’Asia Hydrogen Ecosystem’… Chairman Taewon Choi encourages ESG management
On the 7th, SK Corp. and SK E&S announced that they would invest 800 billion won in US plug power, a total of 1.6 trillion won. Through this, SK has secured a 9.9% stake in Plug Power and has become the largest shareholder.
Plug Power, headquartered in New York, USA, is a hydrogen fuel cell development and manufacturing company established in 1997. It is ranked as one of the top 3 technology leaders among hydrogen-related companies in the United States. As of 2019, sales amounted to 233.23 million dollars (about 2504 billion won), but the market capitalization was about 16 trillion won as of the end of last year.
Plug Power possesses various hydrogen-related core technologies, such as fuel cells for vehicles, electrolyzer, which is a core facility of water electrolysis (a technology that produces hydrogen by supplying power to water), and construction of a hydrogen charging station. It has grown in size by supplying hydrogen forklifts to global distribution companies that operate large warehouses such as Amazon and Wal-Mart. An SK official said, “Plug Power has virtually dominated the entire U.S. hydrogen forklift supply market. Using the hydrogen charging station network established throughout the U.S., it has entered the mid- to large-sized truck market, and its business is expanded to the European market, which is active in building a hydrogen ecosystem. If possible, a steeper growth is expected.”
View larger-Plug Power is discovering various demands that use lithium-ion batteries such as drones and small aircraft. Last year, it entered into the European market by signing a contract to supply hydrogen forklifts with UK retailer ASDA. It is expected that the hydrogen fuel cell market, which is still in its infancy, will soon expand its use for transportation, transportation, power generation, and home use.
SK is a calculation that through this acquisition of PlugPower’s stake, it will acquire a clear leadership in the Asian hydrogen market beyond Korea. We believe that by using the technology possessed by Plug Power, the realization of the’hydrogen ecosystem creation’ that SK envisions can be accelerated. In addition, SK is expected to find opportunities to develop new hydrogen-related businesses in the Chinese and Vietnamese markets, which have strong business networks. An SK official said, “After establishing a joint venture with Plug Power, we plan to materialize various business models such as jointly entering the Asian hydrogen market.”
SK has announced that it will focus on fostering the hydrogen business as a next-generation flagship business. SK Group Chairman Choi Tae-won will focus its efforts on hydrogen business that is suitable for a sustainable management method centered on ESG (Environmental and Social Governance).
Earlier, SK established a’hydrogen business promotion team’ composed of experts from affiliates such as SK E&S, SK E&C, and SK Innovation, which are energy-related companies. This organization is in charge of executing strategies related to hydrogen business by bringing together the capabilities of SK Group affiliates. By 2025, the goal is to have a total hydrogen production capacity of 280,000 tons and to have a hydrogen value chain that covers the entire process from production to distribution and supply.
An SK official said, “We will continue to grow our influence in the global hydrogen market by combining SK Group’s business capabilities and various external partnerships. We will establish an eco-friendly hydrogen ecosystem one step ahead and establish itself as a leading ESG management company.” .
Reporter Seo Dong-il [email protected]Go to reporter page>
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