FuelCell Energy Secures Major Agreement with Gyeonggi Green Energy
FuelCell Energy enters into a significant agreement with Gyeonggi Green Energy (GGE) to deliver 42 of its 1.4 MW fuel cell modules. These modules upgrade the Hwaseong Baran Industrial Complex fuel cell power platform in Hwaseong-si, South Korea.
This facility is identified as the largest fuel cell power platform globally, with a production capacity of 58.8MW, sufficient to power approximately 135,000 homes. This initiative aligns with South Korea’s Hydrogen Economy Roadmap aims to supply 15 GW of power from fuel cells by 2040.
Financial and Service Agreement:
Under this agreement, FuelCell Energy expects to generate approximately $160 million in revenue. The contract supplies clean baseload power to the Korean market and includes a seven-year service agreement. This agreement ensures that FuelCell Energy maintains and services the fuel cell modules to enhance reliability and efficiency.
Jason Few, President and CEO of FuelCell Energy, expressed, “Our new agreement with GGE strengthens our commitment to providing clean, efficient, and reliable energy solutions to the Korean market. We look forward to bringing additional platforms to the country, such as our co-located power generation fuelled by biogas and our highly efficient and powerful solid oxide fuel cells delivering power and electrolysis.”
Showcasing Clean Energy Solutions
In June 2024, FuelCell Energy will host an event in South Korea to exhibit its clean energy resolutions to existing and forthcoming consumers, aligning with its Hydrogen Economy Roadmap.
Solid oxide electrolysis and power generation platforms are featured technologies, highlighting Fuel Cell Energy’s commitment to innovation and sustainability.
FCE’s presence in South Korea was strengthened through an MoU with GGE and a long-term service agreement with Noeul Green Energy, underscoring its dedication to the Korean market’s progress in fuel cell technology.
South Korea’s Leadership in Fuel Cell Adoption
South Korea has arisen as a global leader in fuel cell technology, the first country to surpass 1 GW of installed capacity for power generation, with 1,036 MW commissioned. This achievement surpasses the fuel cell installations of the US and Japan, which primarily use the technology for emergency backup power. The Korea Power Exchange has announced tenders for 6,500 GWh this year, with a phased delivery plan extending to 2028.
Challenges and Market Adjustments
Industry authorities noted that plants have expanded their facilities anticipating increased domestic demand due to government policies promoting hydrogen, while real-world demand is quieter than predicted, leading to some establishment closures.
Conclusively, FuelCell Energy’s new contract with Gyeonggi Green Energy depicts a significant refinement in South Korea’s clean energy solutions. South Korea remains at the forefront of the hydrogen economy with persistent innovation and strategic partnerships, setting an example for other nations transitioning into sustainable energy sources.
