Plug Power Inc (PLUG)

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According to the related industry on the 4th, SK E&S will invest a total of 44.7 billion won in two times this month and July to its affiliated company SK Plug Hiverse.

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SK E&S is making an additional investment in the hydrogen field, including making an additional investment in SK Plug High Bus, a joint venture that focuses on the liquefied hydrogen charging business. In the first half of this year, the plan is to promote the commercialization of 30,000 tons of liquefied hydrogen plants per year, which is the world's largest level, and the construction of hydrogen value chain from production to transportation and charging of liquefied hydrogen and blue hydrogen.

According to the related industry on the 4th, SK E&S will invest a total of 44.7 billion won in two times this month and July to its affiliated company SK Plug Hiverse. The funds will be used to finance business investment and corporate operating expenses.

SK Plug Hiverse is a hydrogen business joint venture established in January 2022 by SK E&S and PlugPower, an American hydrogen company. SK E&S and Plug Power each have a 51-49 stake.

Initially, SK E&S planned to conduct related investments in two times in January and May of this year, but the schedule has been adjusted.

When the investment is completed, the total investment amount of SK E&S's SK Plug Hiverse will increase to 98.8 billion won.

SK E&S plans to start the hydrogen business, which is considered as a core business in the future, including this investment. In this regard, SK E&S plans to produce up to 30,000 tons of liquefied hydrogen per year at the liquefied hydrogen plant in Wonchang-dong, Incheon from the first half of this year. Currently, the mechanical construction has been completed and the commissioning is underway.

In addition, about 40 liquefied hydrogen filling stations, which are infrastructure for distributing liquefied hydrogen, are also being built, and will start operation in the first half of the year. SK Plug Hibus will build and operate this liquefied hydrogen charging station.

SK E&S plans to induce the development of related industries and job creation by maximizing the use of excellent domestic technology in the overall large-scale hydrogen liquefied hydrogen production and distribution business, including the establishment of liquefied hydrogen filling stations. Already, SK E&S is cooperating with domestic companies with technology in various fields such as liquefied hydrogen tanks, low-temperature heat exchangers, and valves throughout the construction and operation of the Incheon liquefied hydrogen plant. Last month, it also signed a business agreement with KD Transport Group and Hyundai Motor Company to create an eco-friendly hydrogen mobility ecosystem in the metropolitan area.

SK E&S is also spurring the production of blue hydrogen using carbon dioxide capture and storage (CCS). We plan to produce low-carbon liquefied natural gas (LNG) by applying CCS technology that has already been commercialized to the Barosa Gas fer in Australia, which has been participating in development since 2012, and introduce an average of 1.3 million tons per year to Korea for blue hydrogen production. SK E&S is in multilateral negotiations with Australia and East Timor to bury CO2 from natural gas and blue hydrogen production into the Bayu-Undan depletion gas site in East Timor, Australia.

In this regard, SK E&S President Chu Hyung-wook emphasized in this year's New Year's address, "In 2024, we need to enhance the inherent competitiveness of all businesses through continuous business model innovation and optimization, organic linkage between the four major businesses (LNG-Higen-Renewable Energy-Energy Solution) and mutual complementary synergy," and "We will need to create tangible results for the transition to a green portfolio and global expansion."

https://news.nate.com/view/20240304n34916?mid=n0100
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