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LATHAM, NY, January 6, 2021 (GLOBE NEWSWIRE) – Plug Power Inc. (NASDAQ: PLUG), a leading provider of hydrogen fuel cell and refueling solutions for electric mobility, and SK Group, one of the Leading South Korean business groups, today announced their intention to form a strategic partnership to accelerate hydrogen as an alternative energy source in Asian markets. Through this partnership, Plug Power and SK Group intend to supply hydrogen fuel cell systems, hydrogen refueling stations and electrolyzers to the Korean and Asian markets. Along with this partnership, the companies have also reached a definitive 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 Asian market. rapidly growing. The combination of the significant presence and leadership of the SK Group in the Asian energy sector and its strategic direction on the transformation of its portfolio towards green through the hydrogen economy with the leadership of Plug Power in battery systems hydrogen fueling stations and green hydrogen production represents a powerful team to accelerate the growth of hydrogen economy in Asian markets.
In January 2019, the South Korean government announced the roadmap for the hydrogen economy until 2040, with ambitious targets, including: more than 5 million tons of hydrogen per year, more than 6 million fuel cell electric vehicles, 1,200 filling stations and 15 GW of fuel cell power generation, and predicts the cumulative economic value of its hydrogen economy to reach ~ $ 40 billion by 2040 Plug Power has proven its ability to develop a hydrogen business in North America as a global leader in the hydrogen economy. The opportunity to partner with SK presents an attractive and timely opportunity to gain a foothold in this market with one of South Korea’s leading industrial conglomerates,
“The SK Group has an established strategy to develop the hydrogen economy in South Korea and beyond,” said Andy Marsh, CEO of Plug Power. “The current relationship with the SK Group offers Plug Power immediate strategic advantages to accelerate its expansion into Asian markets – and is intended to result in a formal Joint Venture (JV) by 2022. Due to the complementary strengths of this partnership , we anticipate rapid growth and significant revenue generation from the joint venture that is complementary to our 2024 plan. ”
“Plug Power is a leading player in the hydrogen industry with decades of experience and a distinguished business model,” said Hyeongwook Choo, Director of SK Holdings Hydrogen Business Development Center and Chairman – Managing Director of SK E&S, a leading clean energy company committed to renewable energies. energy, LNG and power plant companies around the world and a subsidiary of SK Holdings. “This partnership between Plug Power and SK will bring significant and solid opportunities in the hydrogen industry, creating value for the company. The SK group focuses and actively invests in the ESG sector and Plug Power would be one of our splendid footprints in this strategy.
This investment represents the largest clean energy PIPE in the United States in the past 20 years (based on the PrivateRaise PIPE database for transactions that have been closed and includes common stock, preferred stock, preferred stock convertibles and convertible debt). Additional details of the investment include:
terms
Under the terms of the investment, a U.S. subsidiary of SK Group will invest $ 1.5 billion in Plug Power by acquiring approximately 51.4 million common shares at a price of $ 29.2893 per share, the 30-day VWAP to as of January 5.e, 2021 with a zero percent reset. The investment is expected to represent a pro forma stake of approximately 9.9% in Plug Power.
Schedule
The investment transaction is subject to customary closing conditions and regulatory approvals, and is expected to close in the first quarter of 2021
Advisers
Morgan Stanley & Co. LLC is acting as financial advisor and Goodwin Procter LLP is acting as legal advisor to Plug Power.
About the power plug
Plug Power develops the hydrogen economy as a leading supplier of complete turnkey hydrogen fuel cell solutions. The company’s innovative technology powers electric motors with hydrogen fuel cells as part of an ongoing paradigm shift in the power, energy and transportation industries to deal with climate change and the energy security, while achieving sustainability goals. Plug Power created the first commercially viable market for hydrogen fuel cell technology. As a result, the company has deployed more than 40,000 fuel cell systems for electric mobility, more than anyone else in the world, and has become the largest buyer of liquid hydrogen, having built and operated a hydrogen highway. in North America. Plug Power offers a significant value proposition to end customers, including significant environmental benefits, efficiency gains, rapid refueling, and reduced operating costs. Plug Power’s vertically integrated GenKey solution connects all the critical elements to power, power and provide services to customers such as Amazon, BMW, The Southern Company, Carrefour and Walmart. The company is now leveraging its know-how, modular product architecture and core customers to grow rapidly in other key markets, including zero-emission road vehicles, robotics and data centers. Learn more at www.plugpower.com.
Safe Harbor Declaration
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties regarding Plug Power Inc. (“PLUG”), including, but not limited to, statements about PLUG’s expectations regarding the joint venture project with SK, including when and if the joint venture will take place, the scope and conditions of the joint venture as well as the growth and potential revenues associated with the proposed joint venture, expansion on Asian markets and the expected time of closing of the investment transaction. You are cautioned that such statements should not be read as a guarantee of future performance or results, and will not necessarily be exact indications of when, or from which, such performance or results will have been achieved. These statements are subject to risks and uncertainties which could cause actual performance or results to differ materially from those expressed in such statements. For a more detailed description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as the risks associated with PLUG’s business in general, see PLUG’s public filings with the Securities and Exchange Commission, including the “Risk Factors” section of PLUG’s annual report on Form 10-K for the year ended December 31, 2019 and quarterly reports on Form 10-Q for the quarters ended March 31, 2020, 30 June 2020 and September 30, 2020 Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are made as of the date hereof, and PLUG assumes no obligation to update such statements as new information becomes available.
SOURCE: PLUG POWER
Media contact
Ian martorana
Bulleit group
[email protected]
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