Benzinga | Oct 6, 2021 12:11PM EDT

Plug Power Forms JV With SK Group To Accelerate Hydrogen Energy Use In Asia: What You Need To Know

Plug Power Inc. (NASDAQ:PLUG) announced Wednesday another joint venture that is likely to expand its presence in Asia further.

What Happened: Latham, New York-based Plug Power said it has formed a joint venture with SK E&S, part of the South Korean conglomerate SK Group, to accelerate the use of hydrogen as an alternative energy source in the Asian markets.

The two companies plan to provide fuel cell systems, hydrogen fueling stations, electrolyzers and hydrogen to the Korean and other Asian markets.

SK E&S and Plug Power will own 51% and 49%, respectively, of the joint venture. The two companies will hold an equal number of board seats, and any material decisions have to be made unanimously.

The joint venture plans to build a gigafactory in a key metropolitan area in South Korea by 2024, with mass capacity for hydrogen fuel cells and electrolyzer systems and plans to supply domestic and certain overseas markets in Asia, the companies said.

Over time, the joint venture also plans to take up distribution of liquefied hydrogen produced by SK E&S to around 100 charging stations nationwide.

Related Link: Plug Power To Build Hydrogen Production Facility In California: What You Need To Know

Why It's Important: Plug Power has been using the joint venture route to expand its presence overseas. In January, the company announced a joint venture with French automaker Renault SA (OTC:RNLSY) for the R&D, manufacturing and sale of fuel cell-powered vehicles and hydrogen turnkey solutions.

For Plug Power, the joint venture with SK provides a unique opportunity to establish a foothold in the Asian market with one of South Korea's leading industrial conglomerates.

"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," Plug Power CEO Andy Marsh said in a statement.

PLUG Price Action: Plug Power shares were up 1.62% midday Wednesday at $24.76.

Related Link: Why Plug Power's Top- And Bottom-Line Are Diverging