S-Oil President Ryu-Yeol (left) and FCI CEO Tae-won Lee are taking a commemorative photo after signing an investment contract at the headquarters building of S-Oil in Mapo, Seoul on the 5th.
S-OIL, an oil refinery, entered the hydrogen business by investing in a fuel cell company.
On the 7th, S-OIL announced that it has signed an investment contract with FCI (Fuel Cell Innovations), which provides energy solutions based on fuel cells. With this investment, S-OIL will secure a 20% stake in FCI, and plans to build a strategic partnership to promote the hydrogen business in the future.
CEO Al Qatani S-Oil said, “This investment is expected to lead the company’s sustainable growth as an investment in the overall hydrogen economy,” and “It will actively respond to the carbon reduction efforts promoted by the government.”
FCI, a joint venture between Korea and Saudi Arabia, holds 40 solid oxide fuel cell (SOFC) patents, and is establishing various cooperative relationships, including collaboration with Solid Power, an Italian fuel cell company. FCI plans to build a production facility of 100MW or more through investment of up to 100 billion won by 2027 and expand its business area to the green hydrogen business.
Together with S-OIL, FCI is promoting not only domestic but also overseas fuel cell markets including the Middle East market. In particular, it plans to supply products to Saudi power companies and telecommunications companies through cooperation with Saudi partners.
Currently, FCI is developing products for power generation and buildings that meet the climate conditions and legal regulations of the Middle East market based on the first 150MW fuel cell supply contract from a Saudi partner, and is a microgrid that complements the output volatility of renewable energy. It is developing jointly with major organizations on marine fuel cells to be applied to type convergence products and ships.
FCI CEO Itaewon said, “The Middle East market is highly competitive in gas prices, so fuel cell power generation can reach grid parity without government subsidies. “I am looking forward to synergy in business with S-OIL.”