HD KSOE ventures into hydrogen fuel cell market with $80M acquisition

South Korean shipbuilding major HD Korea Shipbuilding & Offshore Engineering (HD KSOE) is set to spearhead the global hydrogen fuel cell market through an investment of $80 million to acquire Convion, a company specializing in fuel cell systems.

HD KSOE said it had recently, through its subsidiary HD Hydrogen, acquired the majority of the shares of Finland-based company Convion at €72 million (around $80 million).

Established in 2012, Convion specializes in solid oxide fuel cell (SOFC) and solid oxide electrolyzer cell (SOEC) technology and is said to be one of the few companies in the world that have developed the technology for commercial SOFC generation systems and have supplied it to the market.

By acquiring and developing SOFC and SOEC technologies, which are seen as key for hydrogen energy, HD KSOE hopes to achieve a preemptive effect when entering the market.

The shipbuilder also perceives that global market prospects are bright. According to the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA), the hydrogen fuel cell and water electrolysis market is expected to expand from KRW 2.5 trillion (around $1.85 billion) in 2023 to KRW 17 trillion ($12.7 billion) in 2030, with an average annual growth rate of 30%, driven mainly by onshore power generation.

In particular, the market size is expected to reach KRW 55 trillion ($41.1 billion) in 2040 when the application of marine hydrogen fuel cells is likely to be in full swing and water electrolysis technology is commercialized. 

HD KSOE explained its plans to lead the market with a two-track strategy. HD Hydrogen will oversee the entire fuel cell business while leading the power generation and marine businesses in Korea, and Convion will continue to develop core fuel cell technologies while driving businesses in Europe.

HD Korea Shipbuilding & Marine Engineering recently invested KRW 140 billion ($104.7 million) to establish HD Hydrogen aiming to efficiently promote its hydrogen fuel cell businesses. 

A representative of HD KSOE said: “Along with hydrogen fuel cell and water electrolysis technologies, HD Hyundai is also focusing on developing future energy sources such as small modular reactors (SMRs). With technologies to develop the world’s cleanest energy sources, we plan to become the front runner in the future green shipbuilding industry.”

In October 2023, the South Korean shipbuilding giant signed a €45 million (around $50 million) investment contract with a fuel cell company Elcogen A to advance the large-scale SOFC system.

Back in January 2023, HD KSOE and Elcogen also partnered with Germany’s Fraunhofer Institute for Ceramic Technologies and Systems (IKTS) to collaborate in the fields of hydrogen and fuel/electrolysis cells.