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ACCIONA and Plug Power announce new hydrogen JV


Earlier this Tuesday, ACCIONA, a globally leading supplier of sustainable infrastructure, announced it signed a memorandum of understanding with Plug Power, a global leader in hydrogen fuel cell systems and fueling solutions, to launch a 50-50 joint venture. Consequently, this new JV would be headquartered in Madrid and would serve clients in the Iberian Peninsula.

Furthermore, the JV looks to provide cost-efficient and competitive green hydrogen solutions to multiple end markets.

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ACCIONA and Plug Power new JV

ACCIONA and Plug Power announced this Tuesday they signed a memorandum of understanding to develop a 50-50 hydrogen solutions JV. Moreover, this new alliance would be headquartered in Madrid, mainly serving clients across the Iberian Peninsula.

Accordingly, both companies look to provide cost-efficient and competitive green hydrogen solutions to multiple end markets. Indeed, the parties expect to serve the growing hydrogen demand in Spain and Portugal through green projects.

Also, the new company plans to provide storage, transportation, and delivery services to its customers. Initially, it will target the industrial and business segments.

In fact, ACCIONA’s and Plug Power’s goal is to reach a 20% market share of the region’s green hydrogen business by 2030. In this sense, this project will entail an initially planned investment of over €2 billion.

Plug Power will supply the electrolyzer technology to the JV, and  ACCIONA will provide clean electricity. Furthermore, this JV will also use ACCIONA’s GreenH2Chain® blockchain platform to give guarantees of renewable origin.

According to both companies’ spokespeople, the firms have complementary strengths to create the leading green hydrogen platform in the Peninsula.

Reception and the relevance of the growing demand for hydrogen in Europe

However, the joint venture company is still subject to definitive documentation. In this regard, the launch will probably happen by the end of the first half of 2021. Nevertheless, the JV’s initial projects are already under development.

Andy Marsh, CEO of Plug Power, said, “this joint venture marks another important milestone. Moreover, it shows the continued execution on our strategic properties and strong presence in the fast-growing European hydrogen economy.”  

Besides, the CEO noted that “as (Plug Power) pursue (its) goal to produce 1,000 tons of green hydrogen on a global basis by 2028; it is thrilled to partner with ACCIONA. Indeed, they aim to build the robust, cost-efficient green hydrogen ecosystem chain envisioned by the EU’s hydrogen roadmap.”

Accordingly, José Manuel Entrecanales, Chairman & CEO of ACCIONA declared the company “is committed to driving the creation of a green hydrogen ecosystem; to meet European decarbonization goals and deliver economic growth.”

Moreover, the CEO stressed the company is “proud to partner with Plug Power to position Spain and Portugal as global leading hydrogen hubs.”

Finally, Santander Corporate & Investment Banking is acting as sole Financial Advisor to Plug Power.

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