Plug Power Inc and South Korea’s SK E&S have pledged to spend KRW 1 trillion to build a gigafactory for hydrogen facilities and a research facility in South Korea. As per the statement, it will inject KRW 510 billion into the project, while US-based turnkey hydrogen solutions provider Plug Power will cover the remaining KRW 490 billion.
The investment will be made by the duo’s SK Plug Hyverse joint venture (JV). The duo’s plan is to produce hydrogen fuel cell systems, hydrogen fueling stations and electrolysers and supply certain markets in Asia. The factory will be installed in a major metropolitan area in South Korea, with commercial operations planned to start in 2025.
SK Plug Hyverse JV is 51 per cent-controlled by SK E&S, with Plug Power holding the remaining shares. The two companies have been working together since early 2021 when SK Group made a $1.6 billion capital investment in Plug Power and became its largest shareholder.
In December 2021, Plug Power Inc., and ACCIONA Energia announced that their previously announced 50-50 joint venture has been completed. The joint venture is known as AccionaPlug, and it is based in Madrid. It will develop, operate, and maintain green hydrogen projects in Spain and Portugal.
REGlobal’s Views: With green hydrogen gaining rapid traction across the globe, many companies have announced ambitious plans to set up gigafactories to produce electrolysers and fuel cells. These companies aim to establish their position as early entrants in emerging hotspot markets and capture large market shares in green hydrogen supply chains.