SK Gas Stations to Supply Electric Vehicle Charging and Power Distribution Network Using Fuel Cells

SK Energy Signs Business Agreement with Nambu Power and LS Electric
Generating and Supplying Power with Fuel Cells on Urban Idle Sites

SK Energy introduced the first "Energy Superstation," a business model combining renewable energy generation and electric vehicle charging at gas stations, in February this year at the SK Bakmi Gas Station in Geumcheon-gu, Seoul. Photo by SK Energy

[Asia Economy Reporter Jeong Dong-hoon] SK Energy is partnering with domestic renewable energy companies to expand the distribution of urban-type distributed power sources centered on fuel cells and electric vehicle chargers.

On the 28th, SK Energy announced that it signed a memorandum of understanding (MOU) for the joint development of an 'urban-type fuel cell convergence business,' where power production and consumption occur in the same location, together with Korea Southern Power, LS Electric, Daehan Green Power, and Samchully Asset Management.

The urban-type fuel cell convergence business involves utilizing idle urban sites such as gas stations and national/public land to install fuel cells and electric vehicle chargers, supplying the electricity produced by the fuel cells to the EV chargers and nearby distribution networks. If there is a nearby heat demand, it is also possible to supply the heat generated by the fuel cells. Fuel cells are generators that produce electricity through the electrochemical reaction of hydrogen and oxygen, attracting attention as a low-carbon power source because they emit only pure water during power generation.

Through this collaboration, SK Energy, Korea Southern Power, LS Electric, and Daehan Green Power plan to expand the urban-type fuel cell convergence business by leveraging each company's renewable energy business assets and capabilities. Samchully Asset Management will handle financing necessary for large-scale investment to help accelerate the project's expansion.

Since May last year, SK Energy has been conducting a demonstration project called 'Energy Super Station' under a regulatory sandbox, installing and operating fuel cells within gas stations. Through this, they have established know-how for small-scale fuel cell installation and operation, as well as safety measures and standards. SK Energy plans to rapidly expand the business nationwide to gas stations and also explore new urban sites such as idle national/public land.

The regulatory sandbox is a system that exempts or postpones existing regulations for a certain period when new products or services are launched.

The urban-type fuel cell convergence business is expected to increase the power self-sufficiency rate of large cities and reduce social costs related to transmission losses and transmission network construction. Currently, in the domestic power market, demand is concentrated in urban areas while power generation occurs in distant locations, causing continuous issues with power loss during long-distance transmission and site selection for transmission network construction. Additionally, the ability to supply charging power for electric vehicles, which are expected to rapidly spread in the future, in a timely manner is also considered an advantage of the urban-type fuel cell convergence business.

Jang Ho-jun, head of SK Energy's S&P (Solution & Platform) Promotion Team, said, "Through this collaboration, we have established a foothold for the early expansion of the urban-type fuel cell convergence business. We will contribute to the activation of distributed power generation and the hydrogen economy through smooth project implementation."

Lee Sang-yeol, head of LS Electric's SE Business Division, said, "Through this business agreement, we expect to greatly contribute to responding to the climate crisis and efficiently utilizing energy infrastructure in urban areas by building and operating eco-friendly distributed power sources integrated with smart energy technology in urban areas where energy consumption is increasing but site acquisition for renewable energy introduction is limited."

Kim Woo-gon, head of Technology and Safety Headquarters at Korea Southern Power, said, "The urban-type fuel cell convergence business has the advantage of reducing various social costs by producing and supplying electricity directly at the demand site. Through this agreement, we will combine each company's capabilities to actively respond to the government's policies for distributed power supply and hydrogen economy activation."

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