South Korea’s third-largest conglomerate SK Group has announced a $1.5 billion (£1.1bn) investment in the US hydrogen fuel cell manufacturer Plug Power.

The agreement will see SK Group receive a 9.9% stake in Plug Power and form a joint venture aimed at promoting hydrogen fuel cell products in Asia.

With this partnership, the companies intend to provide hydrogen fuel cell systems, hydrogen fuelling stations and electrolysers to the Korean and other Asian markets.

Andy Marsh, Chief Executive Officer for Plug Power, said: “The current relationship with SK Group offers immediate strategic benefits to Plug Power to accelerate its expansion into Asian markets.”

Hyeongwook Choo, Head of Hydrogen Business Development Center of SK Holdings, commented: “This partnership between Plug Power and SK will bring significant and solid opportunities in the hydrogen industry, creating value to society. SK Group is focusing and actively investing in the environmental, social and governance sector and Plug Power would be one of our splendid footprints within this strategy.”