Posted on August 28, 2024
HD Korea Shipbuilding & Offshore Engineering has made a significant move in the clean energy sector by acquiring Finnish fuel cell company Convion for approximately €72 million. The acquisition, announced on August 26, marks a strategic step for the company as it aims to secure a leading position in the burgeoning hydrogen fuel cell market.
Convion, established in 2012 and based in Helsinki, Finland, specializes in solid oxide fuel cells (SOFC) and solid oxide electrolysis cells (SOEC). These technologies are considered crucial for the future of clean energy due to their high efficiency and ability to operate at high temperatures. Convion is one of the few companies worldwide with commercial SOFC power generation system technology and a proven track record of supply.
The acquisition aligns with HD Korea Shipbuilding & Offshore Engineering’s broader strategy to enter the hydrogen fuel cell market, which is gaining attention as a next-generation clean energy source. The company plans to leverage Convion’s advanced technology and expertise to enhance its capabilities in this sector.
An official from HD Korea Shipbuilding & Offshore Engineering stated, “HD Hyundai is focusing on securing future energy sources such as hydrogen fuel cell and electrolysis technologies, as well as small modular reactors (SMR). We will lead the future eco-friendly ship market with the world’s best clean energy technology.”
The global market outlook for hydrogen fuel cells and electrolysis is promising. According to the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA), the market is expected to grow by an average of 30% annually, expanding from 2.5 trillion won (approximately $1.8 billion) in 2023 to 17 trillion won by 2030. By 2040, the market size is anticipated to reach 55 trillion won, driven by the mainstream adoption of hydrogen fuel cells for ships and the commercialization of electrolysis technology.
HD Korea Shipbuilding & Offshore Engineering plans to secure market dominance through a two-track strategy. HD Hydrogen, a subsidiary established with an investment of 140 billion won, will oversee the fuel cell business, focusing on domestic power generation and marine applications. Meanwhile, Convion will concentrate on developing core fuel cell technologies and expanding business in Europe.
This acquisition follows HD Korea Shipbuilding & Offshore Engineering’s previous investments in the fuel cell sector. In October last year, the company signed an investment agreement worth €45 million with Elcogen AS, another leading fuel cell company, to enhance large-scale SOFC systems. These strategic moves underscore the company’s commitment to advancing its capabilities in clean energy technologies.
Hydrogen fuel cells are devices that convert hydrogen into electricity through a chemical reaction with oxygen, producing only water and heat as byproducts. They are considered a key technology for achieving clean energy and reducing carbon emissions, which is critical in the fight against climate change. SOFCs, in particular, are known for their high efficiency and ability to use a variety of fuels, while SOECs are crucial for producing green hydrogen through electrolysis.
