The Fair Trade Commission (FTC) of South Korea has granted approval for the establishment of SL Energy Solutions, a company dedicated to building and operating hydrogen power plants. The new venture is a collaborative effort between SK Energy, LS Electric, Daehan Green Partners, and Samchully Asset Management.
On June 21, the FTC received and reviewed a business combination report, concluding that the combination posed no restrictions on competition. The review results were returned on July 5.
In terms of share structure, SK Energy and LS Electric each hold the majority stake at 29.9%, followed by Daehan Green Partners at 25.3% and Samchully Asset Management at 14.9%.
SL Energy Solutions is a Special Purpose Company (SPC) designed to operate a hydrogen power generation business, ranging from 300KW to 10MW, through small-scale fuel cells at gas stations and idle lands located in downtown areas in Korea.
The company plans to enter the general hydrogen power generation bidding market in 2024, in line with the Clean Hydrogen Power Generation Mandatory System (CHPS).
Following the establishment of the new company, the FTC reviewed concerns about potential exclusion of competitors and increased entry barriers in the domestic general hydrogen power generation market in the future.
However, the FTC determined that the fuel cell power generation market was opened in accordance with the ‘Announcement on Calculation of Purchase Volume by Year in the Hydrogen Power Generation Bidding Market’ and a large number of private bidders are expected to participate. Given the market structure, it concluded that the effect of restricting competition was not significant.
The approval of this business combination is expected to encourage active participation from various private companies in the hydrogen power generation market.
The FTC plans to continue supporting the growth of the related market ecosystem by promptly reviewing business combinations related to market entry in new industries such as eco-friendly energy.
Read the most up to date Fuel Cell and Hydrogen Industry news at FuelCellsWorks
