Hanwha, Doosan first to create synergy through hydrogen biz

Hanwha Energy's Daesan fuel cell power plant / Courtesy of Hanwha Energy

By Kim Hyun-bin

Hanwha and Doosan have been leading the country in the hydrogen sector, even before Hyundai, SK and POSCO vowed to inject over 10 trillion won to help set up the country's hydrogen roadmap and infrastructure last year.

Last July, Hanwha and Doosan became the world's first to launch a by-product hydrogen fuel cell power plant, becoming a leader and creating synergy in the renewable energy sector.

Doosan Fuel Cell and Hanwha Energy announced on July 28 that they have jointly launched the world's first and largest fuel cell plant in Seosan, South Chungcheong Province.

Doosan boasted that it supplied 114 50MW fuel cells to the new plant. The company has been in charge of supplying and maintenance of the plant's fuel cells for the next 20 years.

Hanwha Energy, which operates the plant, will focus on utilizing the 50MW by-product of hydrogen fuel cells in order to produce 400,000 MWh of electricity annually to power 160,000 households in the South Chungcheong region.

The hydrogen by-product that is produced is derived from the petrochemical process and pushed through an underground pipeline causing an electrochemical reaction with oxygen, which in turn produces electricity. The process is eco-friendly and does not produce greenhouse gases, sulfur oxides and nitrogen oxide, among other pollutants.

Both Hanwha and Doosan Fuel Cell have both emphasized enhanced cooperation with their affiliates. The hydrogen is supplied by Hanwha Total while Hanwha E&C injected 255 billion won ($228 million) for the construction of the plant.

The two companies' efforts have sped up other conglomerates and government initiatives to establish a hydrogen infrastructure. Last July, soon after the launch of the fuel cell plant, the Korean government and major conglomerates set up a hydrogen economy committee. During the third committee meeting in March, SK Group vowed to inject 18 trillion won over the next five years to establish a local hydrogen ecosystem.

However, Hanwha and Doosan's hydrogen partnership started way in advance, dating back to January 2018, starting from establishing the joint, special purpose company, Daesan Green Energy, in which Hanwha Energy is the largest shareholder. Hanwha agreed to operate the fuel cell plant while Doosan supplied the fuel cells and maintenance services.

Hanwha picked Doosan Fuel Cell as its partner, due to their unrivaled fuel cell technology. In May 2017, Doosan established a fuel cell production plant in Iksan, North Jeolla Province, capable of producing 168MW fuel cells annually. So far, the company has manufactured 987 units, which are capable of producing 433.86MW of power.