Plug Power Preparing To Expand Business To China, Vietnam, South Korea: Nikkei Asia

Hydrogen fuel cell maker Plug Power Inc. PLUG is planning to expand its business to China, Vietnam and South Korea, Nikkei Asia reported Tuesday.

What Happened: Plug Power reportedly intends to expand the business in the three Asian countries through its joint venture with South Korean conglomerate SK Group.

SK Group said in February that it has completed a $1.6 billion capital investment in Plug Power to partner in accelerating hydrogen as an alternative energy source in Asian markets and help in the global transition to a hydrogen economy.

The companies plan to establish a fuel cell factory in South Korea through their joint venture and accelerate the expansion into other Asian markets. The factory will produce fuel cells and electrolyzers that extract “green hydrogen” from water using renewable energy.

Andrew Marsh, president and CEO of Plug Power, told Nikkei Asia in an interview that Asia would be a key focus for the company to achieve revenue of $1.7 billion by 2024, compared to $337 million in 2020.

See Also: Where Plug Power Stands With Analysts

Why It Matters: Power Plug’s move is part of its efforts to capitalize on efforts by Asian governments to develop hydrogen, which does not emit carbon dioxide when burnt, as a green energy source.

South Korea’s Hydrogen Economy Roadmap, announced by the government last year, has laid out targets such as putting 6 million fuel cell EVs on the road,  setting up 1,200 refilling stations and 15 GW of fuel cell power generation by 2040.

The advancement of the hydrogen economy is widely viewed by experts as an important part of addressing climate change because hydrogen is a clean energy source. Hydrogen also can be used for wide-ranging applications from powering forklifts to industrial complexes.

Plug Power is now increasing investments in green hydrogen — hydrogen made from renewable resources — as more companies across the world see the gas as a clean power source. The company made two significant acquisitions in 2020 to support its green hydrogen pursuits – GinerELX and United Hydrogen.

See also: How to Buy Plug Power (PLUG) Stock

Price Action: Plug Power closed 7.6% lower on Tuesday at $24.60. PLUG shares are down 27.5% year-to-date, and shares of rival FuelCell Energy Inc. FCEL are down 22.5%.

Read Next: If You Invested $1,000 In Plug Power Stock One Year Ago, Here's How Much You'd Have Now

Photo, courtesy of Plug Power.