South Korea-based companies Doosan Fuel Cell and Kolon Global have signed a ‘Basic Agreement for Mid- to Long-term Business and Expansion of Cooperation Areas’ to cooperate step by step to develop an eco-friendly hydrogen fuel cell business model using biogas.
Under the agreement, Doosan Fuel Cell will be in charge of hydrogen fuel cell supply and long-term maintenance (LTSA), while Kolon Global will be responsible for fuel supply, EPC, and securing piping facilities.
In addition, the two companies agreed to collaborate on various permits and technical exchanges necessary for the business.
According to Doosan, the business model that the companies will be working on is an ‘eco-friendly, high-efficiency energy business’ that removes impurities from biogas generated from sewage treatment plants and mixes it with natural gas to use as a fuel for hydrogen fuel cells.
Doosan said that the electricity generated in the process will be used as a distributed power source, and the heat for heating, cooling, and hot water in the neighbouring area.
In addition, the companies plan to install Trizen, which, according to Doosan, can produce hydrogen, electricity, and heat at the same time, ultimately enabling hydrogen vehicle charging.
Doosan pointed out that the business model is relatively easy to commercialise as Kolon Global owns the right to operate a sewage treatment plant, and it is also a business model in which local governments, companies, and local residents can coexist by using biogas generated in the local community as eco-friendly energy.
The two companies stated they plan to develop the business model this year and start bidding for the domestic Clean Hydrogen Power Generation Compulsory System (CHPS) in earnest from 2024.
CHPS was established to separate the hydrogen power generation sector from the existing Renewable Energy Supply Mandatory System (RPS), establish a support system that meets the characteristics of hydrogen power generation, and promote the use of clean hydrogen in hydrogen power generation, Doosan noted.
Jeong Hyeong-rak , CEO of Doosan Fuel Cell, commented: “We expect high business synergies between Kolon Global, which specialises in eco-friendly energy business development and infrastructure, and Doosan Fuel Cell, a leading hydrogen fuel cell company. We will preoccupy the market and secure mid- to long-term orders.”
In regard to its plans for this year, Doosan said it wants to expand orders this year by securing new ones related to RPS and CHPS, developing overseas markets, and diversifying business models.