SK E&S-Plug Power of the US to Invest 1 Trillion KRW in Domestic Hydrogen Business

Joint Venture 'SK Plug Hyverse' Invests 1 Trillion Won
Fuel Cell and Water Electrolysis Facility Gigafactory
Full-Scale Construction of Liquefied Hydrogen Charging Stations Begins

SK E&S will invest a total of 1 trillion KRW in the domestic hydrogen industry, including the construction of a hydrogen facility production base called the 'Gigafactory,' in collaboration with Plug Power, a leading hydrogen company in the United States.

On the 2nd, SK E&S announced that it had unveiled this joint investment plan with Plug Power at an 'Investment Declaration Ceremony' held on the 25th of last month (local time) at the U.S. Chamber of Commerce in Washington D.C. The event was attended by President Yoon Suk-yeol, Minister of Trade, Industry and Energy Lee Chang-yang, SK Group Chairman Chey Tae-won, and an economic delegation composed of corporate leaders, as well as representatives from six U.S. companies, including Plug Power, that decided to invest in Korea.

Image of a 1MW-class polymer electrolyte membrane (PEM) type water electrolysis facility by the American hydrogen company Plug Power, which established a joint venture with SK E&S. Photo by SK E&S

SK E&S and Plug Power will invest a total of 1 trillion KRW in the domestic hydrogen industry through the joint venture 'SK Plug Hyverse,' established last year. According to the joint venture's shareholding ratio, SK E&S will bear 510 billion KRW, and Plug Power will bear 490 billion KRW. This collaboration was made possible by the potential of the Korean hydrogen market, supported by the government's active fostering policies, and SK E&S's differentiated competitiveness.

This joint investment is regarded as a representative business cooperation model between Korean and U.S. companies in the hydrogen sector. The advanced hydrogen technology possessed by Plug Power and SK E&S's long-accumulated capabilities in energy production, distribution, and sales are expected to serve as a stepping stone for Korea to secure differentiated competitiveness in the global hydrogen market. SK E&S stated, "We will do our best to nurture the domestic hydrogen industry into a new export industry and to leap forward as the 'No. 1 hydrogen industry nation,' a government national agenda."

The investment from both companies will be used to build a 'Hydrogen Technology R&D (Research and Development) Center and Gigafactory' in Korea. The Gigafactory is a 'core hydrogen facility production base' capable of mass-producing hydrogen fuel cells for vehicles and power generation, as well as water electrolysis equipment. Starting in 2025, it will sequentially begin mass production of products to supply the domestic and Asian markets. The hydrogen fuel cells and water electrolysis equipment produced here will incorporate Plug Power's core technologies, enabling the localization of advanced hydrogen technologies.

In particular, the hydrogen fuel cells produced at the Gigafactory will be used in a clean hydrogen power generation project that uses blue hydrogen produced from SK E&S's 'Boryeong Blue Hydrogen Production Base' starting in 2026, playing a significant role in expanding the clean hydrogen ecosystem.

Additionally, SK Plug Hyverse plans to produce and supply water electrolysis equipment, an essential facility for green hydrogen production, accelerating the domestic green hydrogen era while aiming to secure a leading position in the global market.

Establishment and Operation of Domestic Liquefied Hydrogen Stations... 'Hydrogen Economy' Becomes Visible

SK Plug Hyverse will also invest in the construction and operation of domestic liquefied hydrogen charging stations. They plan to build liquefied hydrogen charging stations in major regions nationwide and support the spread of hydrogen mobility through smooth liquefied hydrogen supply and infrastructure development. Compared to gaseous hydrogen, liquefied hydrogen allows for large-scale transportation and rapid charging, expected to lead to innovation in hydrogen distribution and storage methods.

Starting at the end of this year, SK E&S will produce 30,000 tons of liquefied hydrogen annually at the Incheon liquefied hydrogen plant, and from 2026, an additional 50,000 tons will be supplied annually from the Boryeong Blue Hydrogen Production Base. The liquefied hydrogen produced by SK E&S will be supplied as fuel for various hydrogen mobility vehicles, such as hydrogen buses, through liquefied hydrogen charging stations established and operated by SK Plug Hyverse, accelerating the realization of the 'hydrogen economy.'

George McNamee, Chairman of the Board of Plug Power, said, "Korea is a leading country in the hydrogen industry, and we are deeply impressed by the Korean government's foresight in fostering hydrogen as a national agenda." He added, "Through SK Plug Hyverse, Korea can grow into an export hub for the Asian hydrogen market in the near future."

Choo Hyung-wook, CEO of SK E&S, stated, "This joint investment with Plug Power will be a turning point that dramatically enhances the global competitiveness of Korea's hydrogen industry. We will steadily push forward the construction of the Boryeong Blue Hydrogen Production Base, which applies advanced U.S. technology, to establish a domestic clean hydrogen ecosystem early and do our best to help Korea leap to the center of the global hydrogen industry."

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