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Doosan Launches Task Force to Focus on Hydrogen Business

By April 21, 2021 8   min read  (1352 words)

April 21, 2021 |

fuel cells works, Doosan Launches Task Force to Focus on Hydrogen Business
  • Market analysis and strategy establishment in all areas of hydrogen production-distribution-utilization
  • Maximization of synergy in the hydrogen business of affiliates such as hydrogen liquefaction plant, hydrogen fuel cell, and hydrogen mobility

Doosan announced that it recently gathered experts from affiliates such as Doosan Heavy Industries & Construction and Doosan Fuel Cell to form a hydrogen task force in the Doosan Corporation holding division and set out a strategy for the overall hydrogen business.

Taking the initiative to preoccupy the market by analyzing the global hydrogen market and grasping market opportunities by country and policy, by consolidating the hydrogen business capabilities accumulated in the group.

  • Establish hydrogen business strategy across all areas of the value chain

Doosan Hydrogen TFT first began to analyze the global hydrogen market in cooperation with an external professional organization.

The goal is to find a market throughout the value chain and establish a business execution plan from △’production’ of hydrogen △’distribution’ such as storage and transportation △’utilization’ such as power generation and mobility. Doosan is paying particular attention to the North American market and is focusing on analyzing the hydrogen market by states in the United States.

In addition to finding and analyzing the market, another major task of hydrogen TFT is to raise the efficiency of Doosan Group’s existing hydrogen technology and establish a strategy for securing necessary core technologies in the future. A Doosan official said, “We will create the maximum synergy effect by gathering the accumulated competencies within the group, and for additional necessary areas, we plan to aggressively pursue our ability to increase our capabilities in the short term through M&A or find strategic partners.”

  • A solid background of hydrogen business capabilities that are one step ahead

Doosan is confident that it will release a blueprint sooner or later because it has a solid background. It has a competitive edge in the major hydrogen industry.

In the field of hydrogen fuel cell power generation, Doosan Fuel Cell is leading the domestic market with its unrivaled technology. Doosan FuelCell has achieved KRW 1 trillion in new orders for the last three years in a row, and set a goal of achieving KRW 1.5 trillion in sales in 2023. A Doosan official said, “With few domestic suppliers of hydrogen fuel cells for power generation, Doosan’s fuel cell technology portfolio is being evaluated by the industry for its high competitiveness as it can meet various demands.”

Doosan Fuel Cell is currently mainly producing phosphoric acid fuel cells (PAFC), and is also developing solid oxide fuel cell (SOFC) technology in cooperation with Ceres Power in the UK. Separately, Doosan Corporation Fuel Cell Power has a lineup of polymer electrolyte fuel cells (PEMFC) such as hydrogen fuel cells for 5kW·10kW buildings, 1kW residential use, and 100kW-class hydrogen systems.

In the field of hydrogen mobility, Doosan Mobility Innovation (DMI) boasts advanced technology. DMI is the first company in the world to develop and mass-produce hydrogen drones that have significantly increased flight time. DMI has demonstrated the product’s performance in a variety of situations, including emergency goods delivery to remote areas, gas pipeline monitoring, long-term forestry monitoring, and rescue of life at sea. DMI is attracting attention by being invited to participate in various events related to hydrogen mobility, including an announcement about the industrial value of hydrogen drones at the International Hydrogen Forum held for the first time last year.

Doosan Fuel Cell Drone

Emergency Rescue Demonstration: Doosan Mobility Innovation’s hydrogen drone, which has a flight time of more than two hours, is flying with a life-saving tube at a life-saving flight demonstration.

  • Rapidly expanding into new fields

Doosan affiliates are not only expanding their existing hydrogen business, but also rapidly expanding their business to new fields.

Doosan Heavy Industries & Construction entered into a hydrogen liquefaction plant business by signing a contract with Changwon City in Gyeongnam at the end of last year. Construction is underway on the site of Doosan Heavy Industries & Construction’s Changwon Plant with the goal of completion in 2022. Doosan Heavy Industries & Construction aims to become a major player in domestic hydrogen distribution by supplying liquefied hydrogen made with its own technology to hydrogen charging stations.

Doosan Heavy Industries & Construction is also the largest shareholder with a 30.3% stake in Doosan Fuel Cell, and will focus on creating synergies with Doosan Fuel Cell in the hydrogen business.

At a general shareholders’ meeting last month, Doosan Fuelcell expanded its scope by adding △hydrogen product manufacturing and sales service, △installation and operation of hydrogen production facilities and hydrogen fuel supply facilities, and △electric vehicle charging as new business objectives. Doosan FuelCell is already expanding its business scope, which was limited to the power generation field, by jumping into the development of fuel cells for ships. In addition, Doosan FuelCell has begun developing PEMFC-based water electrolysis technology to preoccupy the green hydrogen equipment market, which is expected to grow to more than 30 trillion won in 2030. This technology was recently selected as a national project and is expected to be commercialized by 2023.

Following the sky, DMI is also looking to the field of terrestrial mobility. A representative example is the recent business agreement with Zhongshin Heavy Industries and Kaicheng Intelligence, a robot specialized company that occupies 70% of the Chinese firefighting robot market, to jointly develop a firefighting hydrogen robot. DMI plans to incorporate various types of mobility, such as logistics robots, based on the technology of hydrogen fuel cells that can supply power for more than 2 hours.

  • ‘Production’ is also added to the hydrogen business portfolio

Doosan is reaching out not only to’use’ and’distribution’ of hydrogen, but also to’production’.

Doosan Heavy Industries & Construction started producing’Green Hydrogen’. It is planning to produce green hydrogen in a wind farm owned by Jeju Energy Corporation by participating in the’Green Hydrogen Demonstration Project’ started in Jeju Island at the end of last year. Doosan Heavy Industries & Construction is planning to build a hydrogen production system and a system to compress and store the produced hydrogen here.

Doosan Fuel Cell is also laying the groundwork for hydrogen production. Doosan FuelCell is developing Tri-gen, which makes both electricity, heat, and hydrogen from gas such as LPG as a raw material, as a national project. When the task is completed, the business will be expanded to hydrogen production.

Doosan Fuel Cell Large

Fuel Cell Product Photo: Doosan Fuel Cell’s hydrogen fuel cell product for power generation. Fuel cells are eco-friendly energy facilities that produce electricity and heat through electrochemical reactions of hydrogen and oxygen.

  • Positive market situation… Domestic and overseas market expansion

The domestic hydrogen fuel cell power generation industry is showing expectations for the mandatory hydrogen power generation system (HPS), which is scheduled to be introduced next year. When HPS is implemented, orders for hydrogen fuel cells are expected to increase in the short term.

According to Goldman Sachs, the size of the global hydrogen market is expected to increase to $12 trillion in 2050. In particular, the growth of the U.S. hydrogen market is expected thanks to the eco-friendly policies of the U.S. Biden government. Doosan is aggressively targeting the US hydrogen market with Doosan Fuel Cell America. Doosan FuelCell America is focusing on PAFC like Doosan FuelCell. It has been in the aftermath of the stagnation in the US market, but last year it rebounded with sales of 242.4 billion won and net profit of 8.9 billion won.

Three companies, DMI, Doosan Fuel Cell, and Doosan Fuel Cell Power, are also spurring the Chinese market by participating in the Hydrogen Fuel Cell Expo held in China in October last year. The three companies presented products and services such as hydrogen fuel cell packs, hydrogen drones, and hydrogen fuel cells for houses, buildings, and power generation at the Expo. Doosan FuelCell plans to actively advance into overseas markets by utilizing Doosan Heavy Industries & Construction’s global network.

A Doosan official said, “Although our affiliates are making meaningful achievements through their respective projects in the hydrogen field, if a higher vision is presented through the hydrogen TFT and a synergy strategy that unites the group’s hydrogen capabilities comes out, the growth rate will be faster. I expected it.”

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