The Globe and Mail reports in its Friday edition that South Korean conglomerate SK Group is acquiring a 9.9-per-cent share of Plug Power Inc. for $1.5-billion (U.S.), sending shares in the U.S. fuel cell producer higher while sparking a rally in the hydrogen sector.
The Globe's Brent Jang writes that SK Group's investment in Plug Power of Latham, N.Y., is part of a new partnership designed to speed up the development of hydrogen-powered fuel cells while also spurring the production of hydrogen as an energy source in South Korea and other Asian markets.
Plug Power shares surged on Thursday on the Nasdaq Stock Market, rising 35.1 per cent to close at $47.29 (U.S.).
Ballard Power Systems benefited from the spotlight placed on hydrogen, with its shares jumping 15.7 per cent on the Toronto Stock Exchange to finish at $35.64, marking the Canadian company's highest close since May, 2002.
Plug Power and Ballard both make hydrogen fuel cells, though the focus of Plug Power's partnership with SK Group is expected to be on hydrogen production in Asia, said MacMurray Whale, an analyst with Cormark Securities.
China's Weichai Power announced in late 2018 that it bought a 19.9-per-cent stake in Ballard.
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