HD Hyundai expands in hydrogen market with $80.5M acquisition of Finland's Convion

Industry

HD Hyundai expands in hydrogen market with $80.5M acquisition of Finland's Convion

Published: 26 Aug. 2024, 17:40

LEE JAE-LIM
lee.jaelim@joongang.co.kr

[HD HYUNDAI]

HD Hyundai is expanding its presence in the hydrogen fuel cell market with the acquisition of Finnish firm Convion for 72 million euros ($80.5 million).

HD Korea Shipbuilding & Offshore Engineering (HD KSOE), a shipbuilding affiliate of HD Hyundai, said on Monday that its subsidiary HD Hydrogen acquired a controlling stake in the fuel cell company.

Convion, established in 2012 and located in Helsinki, Finland, is a company specializing in solid oxide fuel cells (SOFC) and solid oxide electrolyzer cells (SOEC), one of few companies in the world to have developed technology for the commercialization of SOFC generation systems.

SOFC and SOEC are key technologies for hydrogen energy that are technologically difficult to develop as they are activated at high temperatures and require extended development periods, which is why HD Hyundai believes obtaining these core technologies will increase its competitiveness in the global market.

The hydrogen fuel cell and water electrolysis market is expected to grow to 17 trillion won ($12.8 billion) in 2030, with an average annual growth rate of 30 percent, according to the International Energy Agency and the International Renewable Energy Agency.

The market size is expected to reach 55 trillion won in 2040 when marine hydrogen fuel cells and water electrolysis technology are commercialized.

Hydrogen is an attractive next-generation clean energy source that is expanding its share in the global market. Electricity is produced during the process of combining hydrogen and oxygen to form water without generating greenhouse gases like carbon.

HD KSOE’s recent move to inject 140 billion won to establish its wholly owned subsidiary HD Hydrogen derives from its mission to foster its hydrogen fuel cell business.

The shipbuilder plans to lead the market with a two-track strategy, with HD Hydrogen overseeing the entire fuel cell business for power generation and marine businesses domestically, while Convion will develop core fuel cell technologies as it drives businesses in Europe.

"Along with hydrogen fuel cell and water electrolysis technologies, HD Hyundai is also focusing on developing future energy sources such as small modular reactors,” an HD KSOE spokesperson said in a statement. “With technologies to develop the world's cleanest energy sources, we plan to become the front-runner in the future green shipbuilding industry."

Meanwhile, HD KSOE also invested 45 million euro in Estonian fuel cell manufacturer Eclogen last October to advance solid oxide technology.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]