NEWS

HD Korea Shipbuilding & Offshore Engineering (HDKSOE) is making a full-scale foray into the hydrogen fuel cell market which is gaining global attention as a next-generation clean energy source.

HDKSOE, the intermediate holding company of HD Hyundai for the shipbuilding and offshore operations, announced on August 26 that its subsidiary HD Hydrogen recently acquired ‘Convion’ at 72 million euros, which is a global leading company in fuel cell systems.

Established in 2012, the Helsinki-based ‘Convion’ is a company specializing in solid oxide fuel cells (SOFC) and solid oxide electrolysis cells (SOEC). It is also one of the few companies in the world that has technologies for commercial SOFC generation systems and has supplied them to the market. 

SOFC and SOEC technologies are core technologies for hydrogen energy, which is considered a future clean energy. Since they are being activated at high temperatures, they require highly complex techniques to handle, and a longer development process. In this respect, securing such core technologies will have a great impact on taking initiative in the market.

The global market prospect is also rosy. According to the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA), the hydrogen fuel cell and water electrolysis market is expected to grow by an average of 30% annually, centered on land-based power generation, and to expand from KRW 2.5 trillion in 2023 to KRW 17 trillion in 2030. In particular, the market size is expected to reach KRW 55 trillion in 2040, when hydrogen fuel cells for ships are used in full swing and water electrolysis technology is commercialized.

HDKSOE plans to take the lead in the market with a two-track strategy. HD Hydrogen will manage the fuel cell business, while promoting businesses for domestic power generation and ships. Then Convion will be responsible for developing core technologies for fuel cells and promoting businesses within Europe. HDKSOE invested KRW 140 billion to establish HD Hydrogen to efficiently implement the hydrogen fuel cell business.

An HDKSOE official said, “HD Hyundai is focusing on securing future energy sources such as small nuclear reactors (SMRs) as well as hydrogen fuel cells and water electrolysis technology,” and “We will lead the future green ship market with the world’s best clean energy technology.”

Meanwhile, HDKSOE signed a 45 million euro investment contract with Elcogen AS, a leading fuel cell company last Oct. to advance the large-capacity solid oxide fuel cell (SOFC) system.