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Memorandum of Understanding (MOU) signed to launch a 50-50 joint venture (JV) based in France by the end of the first half of 2021, targeting more than 30% market share in the fuel cell light commercial vehicle (LCV) in Europe.
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The joint venture in France will establish state-of-the-art manufacturing and innovation capabilities for hydrogen fuel cell systems and their integration into vehicles.
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The partnership offers a unique value proposition: ready-to-use solutions with fuel and hydrogen cells, infrastructures and refueling services.
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This strategic project supports the decarbonisation of mobility in Europe with the adoption of clean energy solutions and the creation of innovative value generation activities in France, including an industrial footprint in a promising market, business know-how and intellectual property in this new field of technology
BOULOGNE-BILLANCOURT, France, January 12, 2021 (GLOBE NEWSWIRE) – Groupe Renault, the leading automotive company, and Plug Power Inc. (NASDAQ: PLUG), global leader in fuel cell systems and hydrogen-related services, announced the signing of a Memorandum of Understanding (MOU) to launch a 50-50 joint venture based in France by the end of the first half of 2021. This strategic JV will position Groupe Renault and Plug Power to become important players in Europe in research and development (R&D), transformation, manufacture and sale of fuel cell vehicles and solutions ready for use with hydrogen in the coming years. This joint venture platform will serve the fast growing market for light commercial vehicles with fuel cells, taxis and commercial passenger transport.
Bringing complementary and competitive forces together, this joint venture will be based on Renault Groupthe pioneering experience in new energies and a strong position in electric light commercial vehicles and Plug Power’s 20 years of experience in fuel cell technologies and hydrogen solutions. Global leader in solutions for hydrogen ecosystems, Plug Power has deployed more than 40,000 fuel cell systems, designed and built 110 refueling stations that dispense more than 40 tons of hydrogen per day, and is a technology leader in green hydrogen solutions via electrolysis.
The company intends to offer Exclusive, comprehensive and differentiated products and solutions for the LCV market, designed around 3 main pillars:
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R&D: Groupe Renault and Plug Power intend to establish an Innovation Center for the development of fuel cell technology and hydrogen fuel cell LCV vehicles based on existing and future Groupe Renault platforms. The initial focus will be on the heavy truck segment using the Traffic and Master vehicle platforms. This center will be unique in combining fuel cell and vehicle R&D efforts with integrated engineering teams.
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Manufacture: the joint venture will combine Groupe Renault’s vehicle manufacturing capabilities with Plug Power’s fuel cell and hydrogen systems manufacturing expertise, establishing a vertically integrated fuel cell stack and systems manufacturing center in France for integration into LCV vehicle platforms. In addition, this manufacturing center will provide hydrogen replenishment systems, a key part of the hydrogen ecosystem.
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Sales: This partnership will create a hydrogen vehicle ecosystem solutions company that offers vehicles, hydrogen gas stations, hydrogen fuel and services to customers. This comprehensive solutions approach will accelerate adoption by commercial fleets.
The JV will start to market fuel cell LCVs in Europe from 2021, with pilot fleet deployments.
Renault CEO Luca de Meo stated: “This joint venture project is fully aligned with our strategy of offering market-ready H2 solutions for LCVs. With Plug Power, we will build an exclusive end-to-end fuel cell value chain and offer complete solutions to customers, including vehicles, gas stations and decarbonized hydrogen supply. With this project, our ambition is to position France as a bridge for industrial, technical and commercial development in this key technology, and to strengthen our leadership in Europe, as our goal is to become the European leader in fuel cell LCV ”.
“Plug Power is proud to be at the forefront of innovation in the hydrogen fuel cell industry, which is why we are excited to partner with Groupe Renault to become a market leader in heavy fuel cell vans in the Europe. We look forward to working with our new partners to combine our technology with their decades of experience in leading the European automotive market, ” added Andy Marsh, CEO of Plug Power.
Groupe Renault and Plug Power will provide the independent joint venture with the necessary resources to achieve its objectives. The conclusion of this joint venture is pending on conditions normally applicable to this type of operation, including the presentation to the workers’ representative bodies in accordance with the applicable regulations and the potential authorization of the competent competition authorities and should be completed by the end of the first half of 2021.
Santander Corporate & Investment Banking is acting as an exclusive financial advisor.
About the Renault Groupe
Groupe Renault has been manufacturing cars since 1898. Today it is an international multi-brand group, selling around 3.8 million vehicles in 134 countries in 2019, with 40 factories, 12,700 points of sale and employing over 180,000 people.
To face the major technological challenges of the future, while continuing to pursue its profitable growth strategy, Groupe Renault is focusing on international expansion. To do this, it is taking advantage of the synergies of its five brands (Renault, Dacia, Renault Samsung Motors, Alpine and LADA), electric vehicles and its unique alliance with Nissan and Mitsubishi Motors. With a team 100% belonging to Renault and committed to the Formula 1 World Championship since 2016, the brand is involved in motorsport, a true vector of innovation and notoriety.
About Plug Power
Plug Power is building the hydrogen economy as a leading provider of complete solutions for hydrogen fuel cells. The company’s innovative technology drives electric motors with hydrogen fuel cells amid an ongoing paradigm shift in the energy, energy and transportation sectors 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 fuel cell systems for e-mobility, more than any other 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, fast sourcing and lower operating costs. Plug Power’s vertically integrated GenKey solution brings together all the critical elements to provide energy, fuel and service to customers like Amazon, The Southern Company, Carrefour and Walmart. The company is now leveraging its know-how, modular product architecture and core customers to rapidly expand to other important markets, including zero-emission road vehicles, robotics and data centers. Learn more at www.plugpower.com.
Plug Power Safe Harbor Statement
This communication contains “forward-looking statements”, in accordance with the meaning of the Private Securities Litigation Reform Act of 1995, which involve significant risks and uncertainties about Plug Power Inc. (“PLUG”), including, but not limited to statements about PLUG’s expectations regarding the planned joint venture with Renault, including when and if the joint venture will take place, the scope and terms of the joint venture, the potential LCV market share related to the planned joint venture and the expected expansion European markets. You are aware that such statements should not be read as a guarantee of future performance or results and will not necessarily be an accurate indication of the times when, or by which, such performance or results will be achieved. These statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. For a more detailed description of the risks and uncertainties that may cause actual results to differ from those expressed in these forward-looking statements, as well as risks related to PLUG’s business in general, please consult PLUG’s public filings with the Securities and Exchange Commission, including the section ” Risk factors “of the PLUG annual report on Form 10-K for the year ended December 31, 2019 and the 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 the date of this document and PLUG assumes no obligation to update such statements as a result of new information.
Media contacts
Renault Group
Delphine DUMONCEAU
+33 (0) 6 09 36 40 53
[email protected]
Plug Power
North America: Ian Martorana – [email protected]
Europe: Emilie de Chezelles – [email protected]