Latham, New York, Jan 06, 2021 (GLOBE NEWSWIRE) – Plug Power Inc. (NASDAQ: PLUG), a leading provider of hydrogen fuel cells and fueling solutions that enable e-mobility, and SK Group, a leading South Korean company, announced today that companies intend to form a strategic partnership to accelerate the use of hydrogen as an alternative energy source in Asian markets. Through this partnership, Plug Power and SK Group intend to provide hydrogen fuel cell systems, hydrogen fuel stations and electrolyzers to the Korean and wider Asian markets. Concurrent with this partnership, the companies also entered into a final agreement for SK Group to make a strategic investment of $ 1.5 billion in Plug Power and announce a plan to form a joint venture in South Korea to support the fast-growing Asian market. The combination of the significant presence and leadership of the SK Group across the energy industry in Asia and its strategic direction in transforming the portfolio into a green environment via the hydrogen economy with Plug Power leading in hydrogen fuel cell systems, fuel stations and green hydrogen generation represents a strong team to accelerate the growth of the hydrogen economy in Asian markets .
In January 2019, the South Korean government announced a hydrogen economy roadmap to 2040, with ambitious goals, including: more than 5 million tons of hydrogen per year, more than 6 mm of fuel cell EVs, 1,200 refilling stations and 15 gigawatts. Of fuel cell power generation, and expects the cumulative economic value of the hydrogen economy to reach $ 40 billion by 2040. Plug Power has demonstrated its ability to scale its hydrogen business in North America as a global leader in the hydrogen economy. The opportunity to partner with SK provides an attractive and timely opportunity to establish a foothold in this market with one of the leading industrial conglomerates in South Korea,
“SK Group has an unwavering strategy for building a hydrogen economy in South Korea and beyond,” said Andy Marsh, CEO of Plug Power. “The current relationship with SK Group provides immediate strategic benefits to Plug Power to accelerate its expansion into Asian markets – and aims to establish a formal joint venture (JV) by 2022. Given the complementary strengths of this partnership, we expect growth and significant revenue generation from the joint venture which It is additional to our plan for 2024. “
“Plug Power is a leading player in the hydrogen industry with decades of experience and an outstanding business model,” said Hyeongwook Choo, president of the Hydrogen Business Development Center at SK Holdings and President and CEO of SK E&S, a leading clean energy company working in renewable energy. Energy companies, LNG and power plants worldwide is a subsidiary of SK Holdings. This partnership between Plug Power and SK will provide significant and robust opportunities in the hydrogen industry, creating value for society. SK Group is focusing and investing actively in the ESG sector and Plug Power will be one of our great hallmarks of this strategy. ”
The investment represents the largest US clean energy company PIPE in the past 20 years (based on PrivateRaise PIPE’s database of closed transactions and includes common stock, preferred shares, convertible preferred shares, and convertible debt). Additional details of the investment include:
Under the terms of the investment, a US subsidiary of SK Group will invest $ 1.5 billion in Plug Power by acquiring approximately 51.4 million shares of common stock at a price of $ 29.2893 per share, which is a 30-day VWAP effective January 5.The tenth2021 at zero percent discount. The investment is expected to account for approximately 9.9% of the initial ownership interest in Plug Power.
The investment transaction is subject to the usual closing terms and regulatory approvals, and is expected to close in the first quarter of 2021
Morgan Stanley & Co. LLC as financial advisor and Goodwin Procter LLP as legal counsel to Plug Power.
About power delivery
Plug Power is building the hydrogen economy as a leading provider of integrated hydrogen fuel cell solutions. The company’s innovative technology is powering electric motors with hydrogen fuel cells amid an ongoing paradigm shift in the energy, energy and transportation industries to address climate change and energy security, while achieving sustainability goals. Plug Power has created the first commercially viable market for hydrogen fuel cell technology. As a result, the company deployed more than 40,000 fuel cell systems for electronic mobility, more than anyone else in the world, and became the largest buyer of liquid hydrogen, having built and operated a hydrogen highway across North America. Plug Power delivers a value proposition for end-customers, including meaningful environmental benefits, efficiency gains, fast fueling and lower operating costs. The vertically integrated GenKey solution from Plug Power connects all the critical elements of energy, fuel and customer service such as Amazon, BMW, The Southern Company, Carrefour and Walmart. The company is now leveraging its expertise, modular product architecture and founding customers to rapidly expand into other major markets including zero-emissions road vehicles, robots and data centers. Learn more on www.plugpower.com.
Safe Harbor Statement
This communication contains “forward-looking statements” within the meaning of the Securities Litigation Reform Act 1995 that carries significant risks and uncertainties about Plug Power Inc. (“PLUG”), including but not limited to data about PLUG’s forecast in relation to the planned joint venture with SK, including when and if the joint venture will occur, the scope and terms of the joint venture, potential growth and revenue related to the planned joint venture, And expansion in the Asian markets, and the expected timing to close the investment deal. You are cautioned that these statements should not be read as a guarantee of future performance or results, nor will they necessarily be accurate indicators of the times during which such performance or results have been or are being achieved. Such data are subject to risks and uncertainties that could cause actual performance or results to differ materially from those contained in these statements. For additional descriptions of the risks and uncertainties that may cause actual results to differ from those expressed in these forward-looking statements, as well as risks related to PLUG’s business in general, see the Securities and Exchange Commission’s public PLUG files, including the “Risk Factors” section in PLUG Annual Report on Form 10-K for the year ending December 31, 2019 and Quarterly Reports on Form 10-Q for quarters ending March 31, 2020, June 30, 2020, and September 30, 2020 readers warning against excessive reliance on such forward-looking statements. Forward-looking statements are issued with effect from the date of this contract, and PLUG does not undertake any obligation to update these statements as a result of the new information.
Source: Power Delivery