S-OIL will enter the hydrogen business by investing in the next-generation fuel cell company, the core of the hydrogen economy.
S-OIL announced on the 7th that it has signed an investment contract with FCI (Fuel Cell Innovations, CEO: Itaewon), which provides clean energy solutions based on fuel cells.
S-OIL will become the largest shareholder in Korea by securing a 20% stake as an initial investment in FCI, and plans to establish a strategic partnership to enter the hydrogen industry and promote the hydrogen business.
FCI, a Korea-Saudi joint venture with 40 SOFC patents, collaborates with Solid Power, an Italian fuel cell company, to develop products suitable for Korean and overseas markets for open innovation. And building a cooperative relationship. With this investment, FCI plans to build a production facility of more than 100MW through an investment of up to 100 billion won by 2027 and expand its business area to the green hydrogen business.
CEO Al Qatani said, “This investment is expected to drive the company’s sustainable growth as the start of investment in the overall hydrogen economy,” and said, “We will actively respond to the carbon reduction efforts promoted by the government.”
■ Promote entry into the Middle East and overseas fuel cell markets
Together with S-OIL, FCI is promoting not only domestic but also overseas fuel cell markets including the Middle East market. In particular, it has 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. It is jointly developing microgrid type convergence products and marine fuel cells to be applied to ships with major organizations.
A fuel cell is a device that generates electricity by chemically reacting hydrogen with oxygen in the air, and is a key device in the hydrogen economy. It is attracting attention as an eco-friendly energy source because it has higher energy efficiency than thermal power generation, has no chemical combustion reaction, and has the effect of reducing greenhouse gases. In particular, the solid oxide fuel cell (SOFC) is a fuel cell that operates at the highest temperature. It has higher power generation efficiency than conventional fuel cells, and its small size is useful for homes, buildings, and power generation businesses, and is in the spotlight for its high utility value.
FCI CEO Taewon Lee 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.”
■ S–oil, Seeking to advance into all fields of the hydrogen industry
In order to achieve the new growth strategy’Vision 2030′, S-OIL is maximizing the profitability of the existing oil refining, petrochemical, and lubrication businesses while actively considering advancing into new business fields such as fuel cells and recycling.
In particular, S-OIL is planning to enter the entire hydrogen industry as one of the new business fields, from production to distribution and sales of hydrogen. To this end, S-OIL is reviewing business using green hydrogen and green ammonia, production and distribution of liquefied hydrogen through cooperation with Saudi Aramco, its major shareholder. In addition, it is considering introducing a complex hydrogen charging station in downtown Seoul, and recently participated in a special purpose corporation called Kohygen (Korea Hydrogen Energy Network) promoted by related industries to build a hydrogen charging infrastructure for buses and trucks.
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