Plug Power Jumps on Renault Hydrogen Joint Venture

Plug Power shares jump as it unveils a joint venture with French automaker Renault.
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Plug Power  (PLUG) - Get Report shares jumped on Tuesday after it and French carmaker Renault  (RNLSY) agreed to create a 50-50 joint venture focused on vehicle systems based on hydrogen fuel cells.

Shares of Plug Power, Latham, N.Y., at last check were up 17% at $63.04. Renault American depositary receipts closed on Monday down 3.5% at $8.79.

The joint venture will include creating a fuel-cell stack and system manufacturing center in France for integration into light commercial vehicle platforms.

The venture will start commercializing fuel-cell light commercial vehicles in Europe starting in 2021 with pilot fleet deployments.

The joint venture will target a more-than-30% share of the fuel-cell-powered LCV market in Europe. 

The partnership will also create a hydrogen vehicle ecosystem solution company that offers vehicles, hydrogen fueling stations, and hydrogen fuel.

The two companies also intend to establish an innovation center to develop fuel-cell technology and hydrogen-fuel-cell LCVs based on existing and future Groupe Renault platforms.

The two companies aim to complete the project in the 2021 first half.

Plug Power has deployed more than 40,000 fuel-cell systems and designed and built 110 refueling stations that dispense more than 40 tons of hydrogen daily.

"With this project, our ambition is to position France as a bridgehead of industrial, technical and commercial development in this key technology, and to strengthen our leadership in Europe, as our objective is to become the European leader in fuel cell LCV,” Renault Chief Executive Luca de Meo said in a statement. 

Last week, South Korea's SK Group said it would invest $1.5 billion in Plug Power. The companies said they were forming a joint venture to provide hydrogen-fuel-cell systems, fueling stations and electrolyzers in South Korea and elsewhere.