US Plug Power's Stake Value Rises 2 Trillion Won Five Days After SK Investment

[Asia Economy Reporter Park So-yeon] The growth momentum of the U.S. company Plug Power, in which SK Inc. and SK E&S jointly invested to become the largest shareholders, is fierce.

According to the industry on the 13th, Plug Power's stock price, which has continued to rise since SK's investment announcement, closed at $66 on the 12th, marking a 130% increase compared to SK's acquisition price of $29 per share. The value of SK's stake has more than doubled, and the increase in the value of SK's holdings from this investment has already exceeded 2 trillion won.

Plug Power's market capitalization has risen to approximately 34 trillion won. This is an unprecedented growth rate that is hard to believe as a result achieved just five days after SK's investment.

The day before, Plug Power and the French Renault Group announced the establishment of a joint venture to target the small and medium-sized hydrogen commercial vehicle market in Europe.

Through the joint venture, Plug Power and Renault Group plan to build hydrogen fuel cell systems and state-of-the-art hydrogen vehicle production lines in France, aiming to capture more than 30% of the fuel cell-based small and medium-sized commercial vehicle market in Europe.

The industry analyzes that investors have high expectations because the transition to a hydrogen economy is progressing not only in the U.S. but also in Europe and Asia.

Global investment banks such as Morgan Stanley and Barclays also forecast that SK and Plug Power are optimal strategic partners capable of creating high synergy, and that their cooperation will secure leadership in the Asian hydrogen market.

An SK official said, "In preparation for the global eco-friendly trend, we have been preparing for the hydrogen business for a long time and have established a meticulous execution strategy. The investment in Plug Power is the result of long-term review."

SK E&S, a subsidiary of SK Inc., has successfully integrated the LNG value chain of production, distribution, and consumption over the past decade, and plans to preoccupy the domestic hydrogen market through value chain integration in the hydrogen business, which has a similar business structure to LNG.

In fact, SK E&S is the only company in Korea that owns LNG terminals and its own gas fields, and is evaluated as the optimal company that can produce hydrogen economically and environmentally process the carbon dioxide generated during hydrogen production by utilizing this LNG business infrastructure.

Additionally, SK E&S has secured operating rights for two LNG terminals in China, uniquely among foreign companies, through cooperation with Huadian, one of China's three major state-owned power companies, and ENN, China's largest private LNG business operator.

SK E&S plans to target the Chinese hydrogen market by leveraging China's LNG infrastructure and network along with Plug Power's technological capabilities, and to secure leadership in the Asian hydrogen market through cooperation with Vingroup, Vietnam's largest private company in which SK holds shares, in hydrogen commercial vehicles and power (generation) sectors.

SK Inc. announced plans to supply 30,000 tons of by-product hydrogen annually starting in 2023, centered on SK E&S, and to produce 280,000 tons of eco-friendly blue hydrogen annually starting in 2025.

The investment industry evaluates that SK Inc., which has established itself as an investment specialist company, has demonstrated outstanding investment capabilities in the hydrogen business following successful investment cases such as SK Materials, SK Siltron, and ESR.

Choo Hyung-wook, Head of the Hydrogen Business Promotion Group (President) at SK E&S, said, "If we combine SK Group's hydrogen supply capabilities using business infrastructure with Plug Power's technology in hydrogen liquefaction, transportation, and charging, we can achieve a stable and economical integrated hydrogen value chain. Based on the experience of growing SK E&S from a city gas company to a global LNG company with pre-tax profits exceeding 1 trillion won, we will continue the success story of the hydrogen business."

This content was produced with the assistance of AI translation services.