[Click eStock] Doosan Fuel Cell, Will Fuel Cell Orders Continue with RPS Increase?

[Asia Economy Reporter Junho Hwang] NH Investment & Securities announced on the 23rd that, with the Renewable Portfolio Standard (RPS) ratio significantly increasing from next year, the number of Renewable Energy Certificates (REC) for power generation companies is expected to rise sharply, leading to a resumption of fuel cell orders. They maintained their target price and buy rating for Doosan Fuel Cell.

The RPS ratio is set to rise from 9% this year to 12.5% next year, and is expected to increase to 25% by 2026. Accordingly, the required RECs for power generation companies will also increase. The expected REC demand for next year is estimated at 62.8 million RECs, about a 33% increase compared to this year.

On the other hand, the amendment to the Hydrogen Act has been delayed in passing the standing committee, and consequently, the introduction of the Clean Hydrogen Power Supply Obligation System (CHPS), which is linked to fuel cell orders, has also been postponed. Power generation companies are currently considering fuel cell orders under these circumstances.

Researcher Yeonseung Jeong of NH Investment & Securities stated, "Doosan Fuel Cell's order outlook for this year is 142MW, but as of the third quarter, it has only reached 28MW, and considering the time remaining, it seems difficult to meet the order guidance within this year." However, he added, "Since fuel cell orders to secure RECs are expected to increase until the first quarter of next year, the resumption of new orders can be considered a more important factor than achieving the order target within this year."

In particular, Doosan Fuel Cell announced on the 21st that it increased its SOFC (Solid Oxide Fuel Cell) facility investment scale from 72.4 billion KRW to 143.7 billion KRW. Although the production scale is around 50MW, it is expected to continue external growth through the completion of new facilities by the end of 2023.

Researcher Jeong said, "Doosan Fuel Cell is the only global power generation fuel cell company generating operating profit," and added, "We expect differentiated stock price direction even amid the stock price adjustments of global hydrogen companies."

This content was produced with the assistance of AI translation services.