Hanwha set to play 'key role' in hydrogen economy

By Kim Yoo-chul

Hanwha Group is looking to make the hydrogen economy a significant part of its future business model with senior executive Kim Dong-kwan leading relevant “strategic initiatives” for this.

In a statement, Hanwha said its investment into U.S. startup Nikola, specializing in fuel-cell and battery trucks, was a “huge success” after the company's stock price closed at $33.75, June 4 (local time), its first trading day after going public, boosting its value to $12.2 billion.

“The value of Hanwha Energy and Hanwha General Chemical's investment into Nikola increased to $750 million. This is a seven-fold jump since the two affiliates invested $100 million in the startup in November 2018,” according to the statement release.

Hanwha Solution Senior Executive Kim Dong-kwan

Hanwha manufactures solar modules and various other types of eco-friendly and renewable energy equipment. Hanwha will supply Nikola with solar modules to generate hydrogen for “green electricity” at specified locations, with Germany's Bosch taking charge of developing related technology and infrastructure.

Hanwha officials said the successful listing of Nikola on the Nasdaq will help the group advance into the promising hydrogen-related business given its expansion in solar- and battery-focused industries. Batteries and fuel cells are used in the automotive sector, and the hydrogen economy is meant to supplement this, according to experts.

In addition to its cash investment, Hanwha will supply Nikola with materials to build a network of solar-powered hydrogen fuel and electric charging stations. They will provide power for the fuel-cell- and battery-powered electric trucks Nikola will be building.

“The purpose of the hydrogen economy is for it to be adopted together with battery technologies. Hanwha is reviewing various options on how to better manage its hydrogen-focused business in the United States as the group has the right to provide electricity produced by solar-cell operations to Nikola's hydrogen charging station,” group spokesman D.S. Kang said. “Because Hanwha General Chemical has the right to manage the operation of hydrogen charging stations, Hanwha Q Cell is positioned to provide solar modules to hydrogen stations with the group's other units providing hydrogen tanks for use in trucks.”

Established in 2015, Arizona-headquartered Nikola is developing hydrogen- and battery-powered trucks. For hydrogen trucks, which are in the pipeline, the U.S. startup was aiming to develop a truck that can run 1,920 kilometers per charge.

Dong-kwan, the oldest son of the group chairman, Kim Seung-yeon, was a “hidden force” in winning approval from Nikola for the group affiliates' investments, according to officials. “Back in early 2018, there were internal reports on why making an investment in Nikola would matter. After thorough internal discussions, a consensus was reached to make the actual investment because the two group affiliates were trying to explore new business models focusing on renewable energy,” one official said, adding the junior Kim's 10-year direct and indirect involvement in managing solar cell businesses “helped a lot.”