LATHAM, NY, January 6, 2021 (GLOBE NEWSWIRE) – Plug Power Inc. (NASDAQ: PLUG), a leading provider of hydrogen fuel cell and fuel solutions enabling e-mobility, and SK Group, one of the leading South Korean business groups, announced today that the companies intend to enter into a strategic partnership to accelerate hydrogen as an alternative energy source in Asian markets. Through this partnership, Plug Power and SK Group aim to supply hydrogen fuel cell systems, hydrogen filling stations and electrolysis equipment to the Korean and wider Asian markets. In conjunction with this partnership, the companies have also entered into a definitive agreement for SK Group to make a $ 1.5 billion strategic investment in Plug Power and announce a plan to establish a joint venture in South -Korea to support the fast-growing Asian market. The combination of SK Group’s significant presence and leadership in the energy sector in Asia and the strategic direction of the portfolio transformation to green through hydrogen economy with Plug Power’s leadership in hydrogen fuel cell systems, refueling stations and green hydrogen generation represents a powerful team to the growth of hydrogen economy in Asian markets.
In January 2019, the government of South Korea announced the hydrogen economy roadmap to 2040, with ambitious goals including: more than 5 million tons of hydrogen per year, more than 6 million fuel cell EVs, 1,200 filling stations and 15 GW of fuel cell power generation , and expects the cumulative economic value of its hydrogen economy to reach ~ $ 40 billion by 2040. Plug Power has proven its ability to scale up a hydrogen company in North America as a global leader in the hydrogen economy. The opportunity to partner with SK provides an attractive and timely opportunity to gain a foothold in this market with one of South Korea’s leading industrial conglomerates,
“SK Group has a well-established strategy to build the hydrogen economy in South Korea and beyond,” said Andy Marsh, CEO of Plug Power. “The current relationship with SK Group provides Plug Power with immediate strategic benefits 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 in this partnership, we expect rapid growth and significant revenues from the joint venture that are incremental 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, head of SK Holdings’ Hydrogen Business Development Center and president and CEO of SK E&S, a leading clean energy company. dealing with renewable energy sources. energy, LNG and power plants around the world and a subsidiary of SK Holdings. “This partnership between Plug Power and SK will provide significant and solid opportunities in the hydrogen industry and create value for society. SK Group is focusing on and actively investing in the ESG sector and Plug Power would be one of our beautiful footprints within this strategy. “
This investment represents the largest US clean energy PIPE in the past 20 years (based on the PrivateRaise PIPE database for transactions in progress and includes common stock, preferred stock, convertible preferred stock and convertible debt). Additional details of the investment include:
Requirements
Under the terms of the investment, a US subsidiary of SK Group will make a $ 1.5 billion investment in Plug Power by acquiring approximately 51.4 million common shares at a price of $ 29.2893 per share, the 30-day VWAP from January 5th.th2021 with zero percent discount. The investment is expected to represent a pro forma ownership interest of approximately 9.9% in Plug Power.
Timing
The investment transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2021.
Advisors
Morgan Stanley & Co. LLC is acting as financial advisor and Goodwin Procter LLP is acting as legal advisor to Plug Power.
About plug power
Plug Power is building the hydrogen economy as the leading provider of comprehensive turnkey hydrogen fuel cell solutions. The company’s innovative technology powers electric motors with hydrogen fuel cells amid an ongoing paradigm shift in the energy, energy and transportation industries to address climate change and energy security while meeting 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 e-mobility fuel cell systems, more than anyone in the world, and has become the largest customer of liquid hydrogen by building and operating a hydrogen highway across North America. Plug Power delivers a significant value proposition to end customers, including meaningful environmental benefits, efficiency gains, fast refueling and lower operating costs. Plug Power’s vertically integrated GenKey solution connects all crucial elements for power, fuel and 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 foundational customers to rapidly expand into other key markets, including zero-emission road vehicles, robotics and data centers. Read more at www.plugpower.com.
Safe Harbor Statement
This announcement 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 with respect to the planned joint venture with SK, including when and whether the joint venture will occur, the size and terms of the joint venture and its potential growth and income related to the planned joint venture, expansion into Asian markets and the expected timing of the closing of the investment transaction. You are cautioned that such statements should not be read as a guarantee of future performance or results, and that they are not necessarily accurate indications of when or by which such performance or results will be achieved. Such statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those in these statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, and for risks related to PLUG’s business in general, see PLUG’s public filings at 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, June 30, 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 their date, and PLUG assumes no obligation to update any such statements as a result of new information.
SOURCE: PLUG POWER
Media contact
Ian Martorana
The Bulleit Group
[email protected]