Plug Power and SK E&S (part of South Korea’s SK Group) today (6th October) have formed a joint venture for speeding up the use of hydrogen in Asian markets.
Both partners will collaborate to provide hydrogen fuel cell systems, hydrogen fuelling stations, electrolysers and green hydrogen to the Korean and other Asian markets.
The joint venture plans to build a ‘Giga Factory & R&D Center’ in a key metropolitan area in South Korea by 2024, with mass capacity for hydrogen fuel cells and electrolyser systems and plans to supply domestic and elsewhere in Asia. Polymer Electrolyte Membrane Fuel Cell (PEMFC), which will be produced at the ‘Giga Factory & R&D Center’, has high energy efficiency and simple structure, excellent durability, and has the advantage of operating at low temperatures.
SK E&S aims to become a ‘global No. 1 hydrogen operator’ plans to increase its hydrogen production capacity to 280k tonnes/year, including 30k tonnes/year of liquid hydrogen and 250k tonnes/year of blue hydrogen by 2025. The joint venture also aims for distributing liquefied hydrogen produced by SK E&S to around 100 charging stations throughout the country.
Plug Power has proven its ability to scale hydrogen infrastructure quickly, and the JV will provide a foothold to Plug Power in the Asian market. SK E&S and Plug Power will own 51% and 49% shares in the JV, respectively. Both parties will hold an equal number of board seats.
The two companies began working together in early 2021 when SK Group invested $1.6 billion in Plug Power and partnered to expedite the hydrogen economy in Asia.
Choo Hyeongwook, the CEO of SK E&S, said, “It will provide SK E&S with a unique opportunity to build a powerful hydrogen ecosystem with Plug Power, including green hydrogen production using electrolyser technology.”
Andy Marsh, CEO of Plug Power, added, “Here in South Korea, we’re thrilled to be working alongside SK to create a vast tapestry of hydrogen refueling stations and key hydrogen infrastructure, which will power industries throughout South Korea and beyond while helping governments and municipalities reach sustainability goals.”