Doosan Fuel Cell Starts Exports by Signing a 105MW Supply Contract in China
- Schedule to establish a joint venture with ZKRG, China, and to build a factory in China to enter the Chinese market
Doosan Fuel Cell begins exporting hydrogen fuel cells overseas.
Doosan Fuel Cell announced on November 14th that it signed a large-scale supply contract where hydrogen fuel cells will be supplied to China's ZKRG Smart Energy Technology CO. Ltd. (hereinafter referred to as ZKRG) and establish a joint venture (JV) with ZKRG.
ZKRG is a China based company focusing on the promotion and application of fuel cell CHP(Combined Heat & Power) technology. In September last year, it ordered four 440kW hydrogen fuel cells from Doosan Fuel Cell and supplied them to the Nanhai District of Foshan, China.
Under the contract, Doosan Fuel Cell will export a total of 105MW hydrogen fuel cells to China in stages. Among them, 50MW will be exported in the form of finished products by the end of 2024 and 55MW in the form of components by the end of 2026.
In addition, two companies agreed to cooperate in supporting the creation of China's power generation with hydrogen fuel cell market, discovering and selling business opportunities through the JV. Soon they are supplying hydrogen fuel cells to the ‘Carbon Free Hospital Pilot Project’ planned in Guangdong Province, China.
In particular, not only China's growing interest in eco-friendly hydrogen, but also distributed heating system infrastructure being built played an important role in the agreement. In fact, as there is a high demand for a hydrogen fuel cell capable of combined heat & power (CHP) in Guangdong Province and Hebei City clusters, the demand for Doosan Fuel Cell’s PAFC, which can produce both heat and electricity, is expected to rise.
“ZKRG is our first partner who support us to become the first hydrogen fuel cell exporter in Korea, and we expect a more win-win partnership thanks to the trust between the two companies and a high understanding of the business,” says Doosan Fuel Cell’s COO Hooseok Che. “If demand is secured, we will be able to accelerate fuel cell supply in China by establishing a hydrogen fuel cell plant and service corporation in China.”
Meanwhile, in March, the central government of China announced the ‘mid- and long-term plan for the hydrogen energy industry (2021-2035)’. The plan is to establish a complete hydrogen technological innovation system and green hydrogen supply system by 2030 and build a diverse hydrogen ecosystem by 2035. Accordingly, recent hydrogen fuel cell pilot projects for power generation are being carried out at a local government level such as ▲the capital economic zone (Beijing, Tianjin, etc.), ▲Yangtze River Delta and ▲Pearl River Delta.
