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Renault (RNLSY) & Power Plug Form Hydrogen Mobility JV in Europe

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Renault SA (RNLSY - Free Report) and Plug Power Inc. (PLUG - Free Report) recently launched a joint venture (JV) for developing hydrogen-powered light commercial vehicles (LCV). The JV has been formed as per the memorandum of understanding (MOU) agreement signed by the companies on Jan 12, 2021.

The JV is named HYVIA, an abbreviation of ‘HY’ for hydrogen and the Latin word “VIA” for road, reflecting the companies’ vision to provide green mobility solutions. The JV’s activities will be carried out at the existing Renault facilities in France, with the head office and R&D teams located in Villiers-Saint-Frédéric. HYVIA’s process, manufacturing and logistics teams will be based in Flins, as part of the Re-Factory project.

Both companies will have equal stakes in the newly-formed entity. David Holderbach, having more than 20 years of experience in strategic, product and international sales at Renault, will take over as the chairman of the JV.

Benefits of the Joint Venture

With the heightening climate-change concerns, the face of the auto industry is rapidly transforming. Investors are now intrigued with companies that offer green solutions to their transportation needs by ensuring zero carbon emissions.

Amid this changing scenario, Renault is rapidly fortifying its capabilities to provide hydrogen technologies at scale, which is crucial to the world’s green energy transition through the hydrogen economy. Renault –– the European leader in electric LCVs –– has been a hydrogen pioneer since 2014 with more than a hundred LCVs on the road.

Plug Power is a global leader of comprehensive hydrogen fuel cell turnkey solutions. The company has installed more than 40,000 fuel cell systems, developed 110 refueling stations that provide more than 40 tons of hydrogen daily, and is at the forefront of providing green hydrogen solutions via electrolysis.

Both companies are very optimistic about the new venture. The new entity will help the companies launch hydrogen mobility to Europe through a complete ecosystem of fuel cell-powered LCVs, green hydrogen and refueling stations across the continent. HYVIA will lead the path toward decarbonation of Europe with an extensive hydrogen-enabled product line-up. Moreover, HYVIA, which targets a 30% market share in hydrogen-powered LCV in Europe by 2030, will capitalize on the existing expertise of Renault and Plug Power to enhance its foothold.

In fact, the integrated HYVIA hydrogen technology will be a perfect fit for Renault’s E-TECH technology, enhancing vehicle range to 500 km with accelerated recharging of three minutes. This is particularly suitable for LCVs, which require greater range and shorter refueling time, wherein hydrogen fuel cells prove to be the undisputed energy solution. Thus, the partnership will pioneer the development of the state-of-the-art hydrogen technology, which will strengthen Renault’s market share in the LCV sector in Europe.  

HYVIA’s first three hydrogen fuel cell vehicles to hit the market will be based on the Renault Master platform and will be available in Europe, along with the deployment of charging stations and the supply of green hydrogen, by the end of 2021.

Renault, peers of which include Daimler AG (DDAIF - Free Report) and CNH Industrial (CNHI - Free Report) , currently carries a Zacks Rank of 4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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