Doosan Supplies Hydrogen Fuel Cells Worth 346.9 Billion KRW to China Expanding Its 'Hydrogen' Market

Doosan Fuel Cell-ZKRG, Joint Venture and Factory Establishment
50MW Finished Products by 2024
55MW Components Export by 2026
Chinese Government's 'Hydrogen Energy Industry Mid-to-Long-Term Plan' as Foundation

[Asia Economy Reporter Choi Seoyoon] Doosan Fuel Cell is set to ramp up exports of hydrogen fuel cells.

Doosan Fuel Cell announced on the 21st that it has signed a contract to supply hydrogen fuel cells worth 346.9 billion KRW to China’s ZKRG Smart Energy Technology (hereafter ZKRG) and will establish a joint venture (JV).

Under this contract, Doosan Fuel Cell will gradually export a total of 105MW of hydrogen fuel cells to China. Of this, 50MW will be exported as finished products by 2024, and 55MW will be exported as components by 2026.

ZKRG is a company engaged in the hydrogen fuel cell business for combined heat and power generation in China. Last September, it supplied four 440kW hydrogen fuel cells from Doosan Fuel Cell to the Nanhai area of Foshan City, China.

The two companies agreed to cooperate through the establishment of the joint venture to support the creation of the hydrogen fuel cell power generation market in China, discover business opportunities, and sales. They will first supply hydrogen fuel cells to the “carbon emission-free hospital pilot project” planned in Guangdong Province, China.

The fact that China is increasing its interest in eco-friendly hydrogen energy and is building distributed district heating system infrastructure positively influenced this contract.

Since 2019, China has actively introduced various promotion policies to grow the hydrogen energy industry, and in March this year, it announced its first mid- to long-term plan for the entire hydrogen industry. According to the Chinese central government’s “Hydrogen Energy Industry Mid- to Long-Term Plan (2021?2035),” China plans to establish a complete hydrogen industry technology innovation system and green hydrogen supply system by 2030 and build a diverse hydrogen utilization ecosystem by 2035. Accordingly, local governments in areas such as the Capital Economic Circle (Beijing, Tianjin, etc.), the Yangtze River Delta, and the Pearl River Delta are currently promoting pilot projects for hydrogen fuel cells for power generation.

In fact, there is a high demand for hydrogen fuel cells capable of combined heat and power generation in Guangdong Province and the Hebei City Cluster, and the demand for Doosan Fuel Cell’s phosphoric acid fuel cells (PAFC), which can produce both heat and electricity, is expected to grow further.

Jaeho Seok, CEO of Doosan Fuel Cell, said, “ZKRG was our partner that cooperated in Doosan Fuel Cell’s first-ever export of hydrogen fuel cells overseas, so the trust and understanding of the business between the two companies are high, and we expect the synergy to expand further.” He added, “If a certain level of demand is secured in the future, we will be able to accelerate supply expansion by establishing a hydrogen fuel cell factory and service corporation within the Chinese region.”

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