Plug Power Inc. (Hysco) announced on Monday that it is looking to form a joint venture partnership with Hyundai Hysco Co. (Hysco) to develop and sell hydrogen fuel cells in Asia.
Plug, one of the leading electrical engine manufacturers in providing clean, reliable energy solutions, plans to use Hysco's stack and plate technology to produce the fuel cells, according to MarketWatch.
The five-year joint venture was signed in a non-binding memorandum of understanding (MOU), which states that the details of the joint venture must be finalized by July 31, 2014. The deal will include the development, production and selling of fuel cell solutions, products and stacks for applications in markets in Asia.
"This highly anticipated joint venture with Hysco will enable Plug Power to broaden its reach into the Asian market, putting us well on our way toward global market expansion," said Andy Marsh, CEO of Plug Power. "The positive impact on our bottom line from fuel cell sales in the region in 2015 and beyond will play a significant role in our achievement of profitability."
Marsh said in a conference call with anaylsts that the joint venture will provide more fuel-cell stacks that Plug can use to power electric forklifts, and that the first products will be ready for release as early as next year, Bloomberg reported. Plug buys most of stacks from Ballard Power Systems Inc. Plug's purchase of ReliOn Inc. last month for $4 million will help in the company's plans to make its own stacks.
Marsh said in the call that the main focus of the joint venture is on handling material, such as the forklifts, and that the material handling market presents a $10 billion opportunity in Asia.
Plug has had the best performance on the Nasdaq Stock Market during the last 12 months, Bloomberg reported.
Plug is the top producer of hydrogen fuel cell systems in North America, and maintains over 150 U.S. patents connected to fuel cell system design, fuel processing, fuel cell stack design, fuel dispensing, controls and energy storage, MarketWatch reported.
Hysco has an important presence in Asian market. The company's founding purpose of creating advanced products and technology includes developing fuel cell systems and fuel cell stacks as well as stack plate technologies at low costs.
