Plug Power, Air Liquide to set up fuel cell JV in Europe

Nov 10, 2011 - US fuel-cell system maker Plug Power Inc (NASDAQ:PLUG) said it had agreed to set up a joint venture with a unit of French industrial gases group Air Liquide (EPA:AI) to respond to the rising demand for fuel cell products in Europe.

The entity will facilitate Plug Power's expansion into the European market, the company said. It will target the European material handling market, which currently has an existing installed base of some 2 million forklift trucks.

Initially, Plug Power will hold a 45% stake in the joint venture with an option to become majority shareholder in 2016. As part of the deal, Plug Power will license certain intellectual property rights to Air Liquide's unit Axane, which in turn will provide instalments of cash for five years.

The new company will sell Plug Power GenDrive fuel cell products made at the company's headquarters in New York. Plug Power added that it was possible to establish manufacturing capacity in Europe in the future.

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