Plug Power Announces Partnership with Chung-Hsin Electric and Machinery Manufacturing Corporation (CHEM)
LATHAM, N.Y., April 16, 2019 (GLOBE NEWSWIRE) — Plug Power Inc. (NASDAQ:PLUG), a leading provider of hydrogen engines and fueling solutions enabling e-mobility, today announced a partnership with CHEM, a leading Taiwanese manufacturer of electric solutions including motors, generators, switchgear, hydrogen generation and stationary fuel cell power systems. Plug Power has begun fulfilling orders for its proprietary 5kW ProGen hydrogen engines to CHEM, which are integrated into CHEM’s next-gen stationary power products for grid support and backup power applications.
The ProGen hydrogen engine provided to CHEM, is an integrated fuel cell system that includes the fuel cell stack, power conversion, and controls in a single, pre-engineered OEM module. CHEM’s system integrates the ProGen engine with their innovative methanol reformer technology to enable on-demand power creation in a turn-key product. The CHEM reformer technology enables cost effective on-site power generation solutions to its core customer base in weak and off grid areas. The CHEM stationary power systems are targeted for use primarily in Asia, Africa, and India where reliable power is critical for a variety of communications and village power applications.
“CHEM is the undisputed leader in fuel reformer technology for stationary fuel cell power solutions, and by integrating our ProGen module, CHEM will have the ability to provide clean, stable backup power solutions in emerging markets where the electric grid is less robust,” said Andy Marsh, CEO of Plug Power. “This partnership opens up new markets and geography for us. Beyond e-mobility applications, we’re continuing to develop solutions for stationary power applications, ensuring reliable next-gen stationary power to people across the globe.”
“CHEM’s partnership with Plug Power to supply its ProGen engine into our ME2 methanol fuel cell system enables lower product cost and improved performance to compete directly with diesel generators in telecommunications and rural electrification applications,” said Hal Koyama, CEO of H2 PowerTech, LLC a CHEM Group company. “This announcement is the first step in CHEM’s partnership with Plug Power, combining the technical synergies and product leadership of both companies to provide reliable, sustainable backup and primary power solutions to the large and growing markets for telecom and rural village power.”
The uninterruptible power supply (UPS) market is expected to grow to over $13 billion by 2025, according to Market Research Engine, and Plug Power will continue to directly serve the backup power market for communications and other applications through direct sales of its GenSure product line, in addition to the new partnership with CHEM.
About Plug Power Inc.
The architect of modern hydrogen and fuel cell technology, Plug Power is the innovator that has taken hydrogen and fuel cell technology from concept to commercialization. Plug Power has revolutionized the material handling industry with its full-service GenKey solution, which is designed to increase productivity, lower operating costs and reduce carbon footprints in a reliable, cost-effective way. The Company’s GenKey solution couples together all the necessary elements to power, fuel and serve a customer. With proven hydrogen and fuel cell products, Plug Power replaces lead acid batteries to power electric industrial vehicles, such as the lift trucks customers use in their distribution centers. Extending its reach into the on-road electric vehicle market, Plug Power’s ProGen platform of modular fuel cell engines empowers OEMs and system integrators to rapidly adopt hydrogen fuel cell technology. ProGen engines are proven today, with thousands in service, supporting some of the most rugged operations in the world. Plug Power is the partner that customers trust to take their businesses into the future.
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Plug Power Inc.(“PLUG”), including but not limited to statements about PLUG’s expectations regarding growth in Europe, revenue, growth with GenKey customers and its project financing platform. You are cautioned that such statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times that, or by which, such performance or results will have been achieved. Such statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. In particular, the risks and uncertainties include, among other things, the risk that we continue to incur losses and might never achieve or maintain profitability; the risk that we will need to raise additional capital to fund our operations and such capital may not be available to us; the risk that our lack of extensive experience in manufacturing and marketing products may impact our ability to manufacture and market products on a profitable and large-scale commercial basis; the risk that unit orders will not ship, be installed and/or converted to revenue, in whole or in part; the risk that pending orders may not convert to purchase orders, in whole or in part; the risk that a loss of one or more of our major customers could result in a material adverse effect on our financial condition; the risk that a sale of a significant number of shares of stock could depress the market price of our common stock; the risk that negative publicity related to our business or stock could result in a negative impact on our stock value and profitability; the risk of potential losses related to any product liability claims or contract disputes; the risk of loss related to an inability to maintain an effective system of internal controls or key personnel; the risks related to use of flammable fuels in our products; the cost and timing of developing, marketing and selling our products and our ability to raise the necessary capital to fund such costs; the ability to achieve the forecasted gross margin on the sale of our products; the risk that our actual net cash used for operating expenses may exceed the projected net cash for operating expenses; the cost and availability of fuel and fueling infrastructures for our products; market acceptance of our products, including GenDrive, GenSure and GenKey systems; the volatility of our stock price; our ability to establish and maintain relationships with third parties with respect to product development, manufacturing, distribution and servicing and the supply of key product components; the cost and availability of components and parts for our products; our ability to develop commercially viable products; our ability to reduce product and manufacturing costs; our ability to successfully expand our product lines; our ability to successfully expand internationally; our ability to improve system reliability for our GenDrive, GenSure and GenKey systems; competitive factors, such as price competition and competition from other traditional and alternative energy companies; our ability to protect our intellectual property; the cost of complying with current and future federal, state and international governmental regulations; risks associated with potential future acquisitions; and other risks and uncertainties referenced in our public filings with the Securities and Exchange Commission (the “SEC”). For additional disclosure regarding these and other risks faced by PLUG, see disclosures contained in PLUG’s public filings with the SEC including, the “Risk Factors” section of PLUG’s Annual Report on Form 10-K for the year ended December 31, 2018. You should consider these factors in evaluating the forward-looking statements included in this presentation and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof, and PLUG undertakes no obligation to update such statements as a result of new information.