LATHAM, NY, January 6, 2021 (GLOBE NEWSWIRE) – Plug Power Inc. (NASDAQ: PLUG), a leading supplier of hydrogen fuel cells and supply solutions that enable electronic mobility, and SK Group, one of the South Korean business groups, today announced that the companies intend 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 fueling stations and electrolysers to the Korean and 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 are announcing a plan to form a joint venture in South Korea to support the growing Asian market. . The combination of SK Group’s significant presence and leadership throughout the Asian energy industry and its strategic direction in transforming the portfolio to green via hydrogen economy with Plug Power’s leadership in hydrogen fuel cell systems, gas stations and green hydrogen generation represents a powerful team to accelerate the growth of hydrogen economy in Asian markets.
In January 2019, the South Korean government announced the Hydrogen Economy Map by 2040, with ambitious targets, including: more than 5 million tons of hydrogen per year, more than 6 million fuel cell EVs, 1,200 refueling stations and 15 GW of fuel cell power generation, the cumulative economic value of its hydrogen economy will reach ~ $ 40 billion by 2040. Plug Power has proven its ability to expand hydrogen businesses in North America as a leader in the hydrogen economy. The opportunity to partner with SK presents an attractive and timely opportunity to establish a position in this market with one of South Korea’s leading industrial conglomerates,
“SK Group has an established strategy to build the hydrogen economy in South Korea and beyond,” said Andy Marsh, CEO of Plug Power. “The current relationship with the SK Group offers immediate strategic benefits for Plug Power to accelerate its expansion in Asian markets – and intends to result in a formal joint venture (JV) by 2022. Due to the complementary strengths of this partnership, we expect rapid growth and generation significant joint venture revenue that is incremental to our 2024 plan. ”
“Plug Power is a leader in the hydrogen industry with decades of experience and a differentiated business model,” said Hyeongwook Choo, head of SK Holdings’ Hydrogen Business Development Center and president and CEO of SK E&S, a leading company clean energy involved in renewable energy businesses, LNG and power plants worldwide 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 society. SK Group is concentrating and actively investing in the ESG sector and Plug Power would be one of our splendid footprints within 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 closed and include common shares, preferred shares, convertible preferred shares and convertible debt). Additional investment details include:
Terms
Under the terms of the investment, an American subsidiary of the 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 VWAP of 30 days on January 5thº, 2021 with a zero percent discount. The investment is expected to represent a pro forma stake 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
Advisers
Morgan Stanley & Co. LLC is serving as a financial advisor and Goodwin Procter LLP is serving as a legal advisor for Plug Power.
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 across America. North. 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, BMW, The Southern Company, Carrefour and Walmart. The company is now leveraging its know-how, modular product architecture and basic customers to rapidly expand to other important markets, including zero-emission road vehicles, robotics and data centers. Learn more at www.plugpower.com.
Safe Harbor Statement
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Plug Power Inc. (“PLUG”), including, but not limited to, statements about the expectations of PLUG in relation to the planned joint venture with SK, including when and if the joint venture will take place, the scope and terms of the joint venture and the growth and revenue potential related to the planned joint venture, expansion into Asian markets and time expected to close 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 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.
SOURCE: PLUG POWER
Media contact
Ian Martorana
The Bulleit Group
[email protected]