SK is moving to establish a strategic partnership with U.S. Plug Power, a leading global hydrogen company, and enter Asian hydrogen markets in earnest.
SK and Plug Power management held an online investment ceremony on Feb. 25 and decided to carry out detailed business plans between the two companies, including the establishment of an Asian joint venture.
Earlier last month, SK Corp. and SK E&S invested a total of 1.85 trillion won (1.6 billion dollars) to secure about 10% of Plug Power shares, making them the largest shareholders of Plug Power.
The ceremony was attended by SK Corp. CEO Jang Dong-hyun, SK E&S Vice Chairman Yoo Jung-joon, SK E&S President Choo Hyung-wook and CEO Andrew J. Marsh of Plug Power.
"SK has been pushing for ESG (environmental, social, and governance) management such as RE100 subscription since last year, and building a hydrogen business value chain is the key to business transformation centered on eco-friendly portfolios," said Jang Dong-hyun, CEO of SK Corp.
"We will successfully enter Asian hydrogen markets by utilizing SK's business capabilities and global networks," said Andrew Marcy, CEO of Plug Power.
Asia JV, which will be established by SK and Plug Power by the end of this year, will build a production base in South Korea that can mass-produce hydrogen businesses such as fuel cells and electrolysis facilities by 2023.
It is planning to drastically lower the unit price of facilities produced here and supply them to South Korean and Asian markets.
In particular, China has set up a strategy to cooperate with state-run power companies in the field of clean hydrogen production and fuel cell generation, while establishing cooperative relationships with commercial vehicle manufacturers to supply fuel cells for vehicles.
Plug Power recently established a global partnership by establishing a series of joint ventures with French automotive company Renault and Spain's largest renewable energy company Acciona.
"We will maximize competitiveness in global hydrogen markets by organically combining SK's domestic and foreign energy infrastructure, business capabilities, global network and Plug Power's hydrogen business portfolio and technology." said an official of SK.
