October 29 (Renewables Now) – French automotive parts supplier Compagnie Plastic Omnium SA (EPA:POM) and German peer Elringklinger AG (ETR: ZIL2) are teaming up to establish a joint venture which will develop and market hydrogen fuel cell stacks and components to further the reduction of carbon emissions by motor vehicles.
Elringklinger will own 60% of the new entity, EKPO Fuel Cell Technologies, with Plastic Omnium keeping the remaining 40%, according to a joint statement issued on Wednesday.
Under the terms, the German company will integrate all its assets relating to fuel cells stacks in EKPO, including over 150 patents, its fuel cell components business as well as several high-power density fuel cell stack platforms which it already makes and markets.
Plastic Omnium, for its part, will invest EUR 100 million (USD 117.1m) in the new business to develop its commercial pipeline and boost its production capacity, which is projected to initially equal up to 10,000 units per year.
EKPO, to be based in Germany, will target revenue of between EUR 700 million and EUR 1 billion by 2030, which would reflect a market share of 10 to 15% in the fuel cell technology sector.
In a separate deal, Plastic Omnium agreed to acquire Elringklinger's Austrian hydrogen subsidiary, Fuelcell Systems Austria GmbH, for an enterprise value of EUR 15 million. That transaction will strengthen the French company's expertise in energy management and hydrogen systems control.
Both deals are subject to competition clearances and slated to be finalised in the first quarter of 2021.
In mid-October, Elringklinger agreed to take a minority stake in a new joint venture with France's Airbus to be formed in order to develop a hydrogen propulsion system including fuel cells for aircraft.
(EUR 1.0 = USD 1.171)
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