SK E&C forms a joint venture in solid oxide fuel cells

SK E&C established a joint venture with the U.S.-based Bloom Energy to produce solid oxide fuel cells, the company announced Thursday.

SK E&C has 49 percent of the Bloom SK Fuel Cell joint venture while Bloom Energy owns the rest.

The production facilities are being built at a factory in Gumi in North Gyeongsang. SK E&C hopes the production of the solid oxide fuel cells will begin this year. The joint venture aims to annually produce 50 megawatts of solid oxide fuel cells and gradually expand to produce 400 megawatts in the future.

“Bloom SK Fuel Cell will become the hub that procures, produces and offers services to the Asian market after the production in Korea goes into full swing,” said a spokesperson for SK E&C in a statement. “Through close collaboration with Bloom Energy, we will continue to discover new business opportunities on the global scale and build a business model that could foster sustainable growth with small- and mid-sized part suppliers.”

Solid oxide fuel cells are electrochemical devices that convert chemical energy of a fuel and an oxidant directly into electrical energy. Their generating efficiency is higher than the existing fuel cells.

SK E&C in September signed a joint venture agreement with Bloom Energy as part of its effort to create a new business model separate from its construction business.

Bloom Energy, headquartered in California, is a company that manufactures and markets solid oxide fuel cells.

BY JIN MIN-JI [jin.minji@joongang.co.kr]