South Korean conglomerate SK Group announced a $1.5 billion investment into a joint venture with fuel cell leader Plug Power (PLUG) to expand hydrogen energy in Asia. Plug Power stock soared.
The partnership will provide hydrogen fuel cell systems, hydrogen fueling stations, and electrolyzers to South Korea and other Asian markets, according to a statement from Plug Power.
Under terms of the deal, SK Group will acquire 51 million shares at 29.29 per share, giving SK Group a 10% stake in Plug Power. Plug Power shares closed at 35 on Wednesday.
The partnership comes as South Korea launched a plan in 2019 to boost hydrogen energy through the country and hit 15,000 megawatts of hydrogen fuel cells by 2040.
In September, Bloom Energy (BE) and SK Engineering & Construction teamed up to open a 28-megawatt capacity fuel cell power plant in South Korea.
Plug Power Stock
Shares of Plug Power soared 28.8% to 45.06 on the stock market today, hitting the highest level since December 2007. The renewable energy stock has been on the rise since the coronavirus crash in March and is now at highs not seen since 2007. Bloom Energy shares jumped 12% to 33.96, hitting a new 52-week high. Shares of FuelCell Energy (FCEL), which has operations in South Korea, climbed 15% to 14.18.
H.C. Wainwright reiterated its buy rating on Plug Power stock and raised its price target to 60, from 35, on Thursday.
Renewable energy investment has been on the rise globally following the enactment of the Paris Climate Agreement. President-elect Joe Biden has said he plans to return to the global accord and has pushed for investment in greener energy sources.
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