HD KSOE invests $47.7M to develop solid oxide fuel cell systems

HD Hyundai President and CEO Chung Ki-sun, left, and Elcogen Founder Enn Ounpuu pose for a photo after signing an investment agreement at Seoul Square in central Seoul on Wednesday. [HD HYUNDAI]

HD Korea Shipbuilding & Offshore Engineering (KSOE) will invest 45 million euros ($47.7 million) in the Estonian fuel cell parts supplier Elcogen AS aimed at propelling the development of large-capacity solid oxide fuel cell (SOFC) systems.

A SOFC is a device that generates electrical energy by reacting to hydrogen and various fuel sources such as natural gas, ammonia, methanol, and biofuel with oxygen — positioning it as the next-generation eco-friendly energy source.

HD KSOE, the intermediate shipbuilding subsidiary of HD Hyundai, plans to enhance their high-capacity SOFC systems to engage in the development of onshore power generation and shipboard power and propulsion systems, and the commercialization of green hydrogen production through seawater electrolysis technology.

A potential joint venture for fuel cell production in Korea with Elcogen is also under consideration, the company said Wednesday.

“The strategic cooperation between the two companies will contribute to expanding the value chain of future core energy sources,” HD Hyundai Chief Chung Ki-sun said during the signing ceremony in Seoul on Wednesday. “We expect the investment agreement to lay the cornerstone for realizing the sustainable future energy ecosystem envisioned by HD Hyundai.”

“Elcogen's unique SOFC technology can play a role in achieving HD Hyundai's goals of 'Green Ocean Transformation' and carbon neutrality,” said Enn Ounpuu, the founder of Elcogen.

Elcogen is an Estonia-based company that manufactures core components of SOFC, namely cells and stacks.

In a move to bolster its commitment to clean energy technology, HD KSOE invested $30 million in TerraPower, a U.S. small modular reactor (SMR) company, in November 2022. The company also established its own SMR research team to accelerate the development of future nuclear-powered ships.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]