SK Partners with US Plug Power to Fully Enter Asian Hydrogen Market

SK-Plug Power Executives Hold Online Investment Ceremony... Full-Scale Promotion of Joint Venture Establishment
Building Fuel Cell Production Base Through Asia JV and Accelerating Market Expansion in China and Asia

[Asia Economy Reporter Hwang Yoon-joo] SK has completed the investment procedures in the global leading hydrogen company Plug Power and established a strategic partnership to actively enter the Asian hydrogen market.

On the 25th, SK and Plug Power executives held an online investment ceremony and began executing specific business plans between the two companies, including the establishment of an Asian joint venture. SK Inc. and SK E&S exercised an additional stock purchase option at the end of January, investing a total of 1.85 trillion KRW (1.6 billion USD) to secure about 10% of the shares, becoming the largest shareholder of Plug Power.

The ceremony was attended by SK executives including Jang Dong-hyun, President of SK Inc., Yoo Jung-joon, Vice Chairman of SK E&S, and Choo Hyung-wook, President of SK E&S and Head of the Hydrogen Business Promotion Group, as well as Andrew J. Marsh, CEO of Plug Power.

At the event, President Jang Dong-hyun said, "Since last year, SK has been actively promoting ESG management, including joining RE100," adding, "Building a hydrogen business value chain is key amid the transition to an eco-friendly portfolio."

Vice Chairman Yoo Jung-joon of SK E&S also stated, "We are pleased to establish a partnership with Plug Power, a global leader in the hydrogen market. We expect synergy between SK and Plug Power to be demonstrated in the process of advancing hydrogen business, including entry into the Asian market."

SK plans to concretize its business model by establishing a joint venture with Plug Power to build a domestic hydrogen ecosystem early and jointly enter the Asian market.

The Asia JV established by SK and Plug Power will build a production base in Korea by 2023 capable of mass-producing core hydrogen business equipment such as fuel cells and water electrolysis facilities. They plan to drastically reduce the supply cost of the equipment produced here and supply it to domestic and Asian markets.

In particular, in China, they plan to promote cooperation in clean hydrogen production and fuel cell power generation with state-owned power companies, while also establishing cooperative relationships with commercial vehicle manufacturers to supply fuel cells for vehicles.

SK and Plug Power are set to finalize their joint entry strategy into the Asian market and establish the Asia JV within the year to begin full-scale operations.

Plug Power is also accelerating its entry into the European market, raising expectations for synergy with SK. Recently, Plug Power has built global partnerships by establishing joint ventures with Renault, a French automaker, and Acciona, Spain's largest renewable energy company.

An SK Inc. official said, "By organically combining SK’s domestic and international energy infrastructure, business capabilities, and global network with Plug Power’s hydrogen business portfolio and technology, we will maximize competitiveness in the global hydrogen market."