Hydrogenics, a leading developer and manufacturer of hydrogen generation and hydrogen-based power systems, has signed an agreement to create a joint venture with Kolon Water & Energy, part of a leading conglomerate in South Korea.
Kolon Group is one of the nation’s largest industrial companies, with a focus on chemicals and textiles, and its subsidiary, Kolon Water & Energy, has identified the potential for renewable power generation projects in South Korea and other Asian regions. Hydrogenics’ and Kolon Water & Energy’s joint venture will look to capitalise on these renewable energy opportunities. South Korea has a significant focus on the deployment of clean, efficient fuel cell technology.
For Hydrogenics, the joint venture represents an important step toward megawatt and multi-megawatt installations of PEM fuel cell products. The company’s product development work in advanced fuel cell power modules and compact rack mounted certified systems forms an important platform for such applications, and the initial target market is thought to exceed 100MW - representing a significant revenue opportunity in equipment sales, service, and operations. The first 1MW of production has already been ordered and is expected to be ready for delivery by early 2015. This contract includes a fuel cell array as well as a 20-year maintenance and service agreement. Additional fuel cell orders are expected in the coming quarters, to complete a multi-megawatt initial project rollout by 2016.
“This is a major step forward for Hydrogenics, as the joint venture opens up tremendous opportunities in a key market for renewable energy generation,” said Daryl Wilson, President and CEO of Hydrogenics. “This also marks Hydrogenics’ first participation in power purchase agreements with local businesses in South Korea. We are very gratified to be working with such an astute, well-connected partner as Kolon Water & Energy.”
“We see a very strong market opportunity with our local customers and beyond, and we look forward to working with Hydrogenics toward realizing the full business potential of this new venture,” added Kolon Water & Energy CEO Soo-Young Lee.