Plug Power Inc. (NASDAQ: PLUG) disclosed that it has acquired Joule Processing. The company has also inked a strategic collaboration with Atlas Copco Gas and Process and Fives to increase offerings for Global Hydrogen Liquefaction Market. The company will join forces with Atlas and Process to jointly develop hydrogen liquefaction plants. Liquifying hydrogen makes it easier to transport, which would result in considerable cost cuts and huge distribution coverage.
Plug Power, Atlas Copco Gas, and Process, and Fives have formed a new partnership to facilitate Plug Power to deliver successful hydrogen liquefiers into its burgeoning fleet of green hydrogen production plants, as well as for sale to third parties interested in adopting super-efficient liquid hydrogen systems.
Joule Processing LLC Acquisition
Furthermore, Plug Power acquired Joule Processing LLC which is a process solution and engineered equipment provider with a good track record of execution among the major EPC and oil and gas midstream firms. Joule's established cryogenic process technology for the gas processing sector is immediately applicable to hydrogen liquefaction and could cut the cost of liquefied hydrogen by 25%.
Additionally, Plug Power will save about $200 million in capital expenditures over the next four years as a result of this acquisition by incorporating hydrogen liquefaction capabilities in-house. Plug Power paid up to $160 million for Joule, with $30 million paid up front and $130 million in future earn-outs contingent on liquefier efficiency, third-party sales, and gross margin criteria being met. Joule's liquefaction technology is being used in Plug Power's green hydrogen plant in Texas, which is now under construction.
Plug Power, Atlas Copco Gas Partnership
Plug Power shall develop, produce, install, operate, and operate hydrogen liquefiers for its use and third parties under the terms of the agreement. Custom turboexpanders and compressors for hydrogen liquefaction plants will be designed and manufactured by Atlas Copco Gas and Process. The brazed aluminum heat exchangers will be manufactured by Fives, and their incorporation in cold boxes will be optimized.