Report: POSCO Energy to Withdraw from Fuel Cell Business
Report: POSCO Energy to Withdraw from Fuel Cell Business
author Added by FuelCellsWorks, November 03, 2016

POSCO Energy, the worlds largest fuel cell producer, is said to be reviewing the idea of shutting down its fuel cell business. 

In a recent report by the Korean Economic Daily, the publication states that according to an industry source the company is reviewing the idea of closing its fuel cell business.

"According to industry sources on November 1, POSCO Energy contacted a handful of companies and private equity firms to identify if they have interest in acquiring its fuel cell business. Some potential candidates launched internal reviews to look into the feasibility of the acquisition."

POSCO Energy became involved in the fuel cell business in 2007 and acquired Fuel Cell Energy with an investment of 100-billion-won.

FuelCell Energy relationship

POSCO Energy and FuelCell Energy began a relationship in 2003 with the direct sale of a single sub-megawatt DFC power plant.  This initial sale subsequently grew into a mutually beneficial partnership with POSCO Energy licensed to manufacture Direct FuelCell® products in South Korea for sale in Asia.  POSCO Energy has installed or ordered more than 270 megawatts of the company’s fuel cell power plants and components.   POSCO Energy owns approximately 10 percent of the outstanding common stock of FuelCell Energy (FCEL).

In 2015 POSCO Energy's fuel cell activity posted a loss of  99.2 billion won.