Elcogen, the European manufacturer of technology that enables delivery of efficient, affordable green hydrogen and emission-free electricity is pleased to announce that Korea Shipbuilding & Offshore Engineering Co., Ltd. (“KSOE”), a company incorporated in the Republic of Korea and a member of HD Hyundai Group (“HD Hyundai”) has signed a strategic investment in Elcogen of €45m with closing subject to, amongst other things, Elcogen obtaining the approval of its shareholders to the issue of the new shares to KSOE.
HD Hyundai’s investment follows an extensive period of testing the full range of technology available in the market, following which an R&D collaboration agreement was signed with Elcogen in January 2023, which was focused on further testing of Elcogen’s technology and development of systems.
Marine propulsion systems
HD Hyundai and Elcogen intend to further strengthen their collaboration with a focus on stationary power generation
Following this investment, HD Hyundai and Elcogen intend to further strengthen their collaboration with a focus on marine propulsion systems and stationary power generation based on Elcogen’s proprietary solid oxide fuel cell (“SOFC”) and green hydrogen production based Elcogen’s solid oxide electrolyser cell (“SOEC”) technology.
This investment will be used to expand Elcogen’s manufacturing capacity as it continues to build the Company’s new factory facility in Tallinn, Estonia, with a manufacturing capacity of up to 360MW to meet increasing demand for its products.
Ocean Mobility
This is an important development for HD Hyundai as it forms another critical step in realising its vision for the next generation of marine propulsion. As part of HD Hyundai’s “Ocean Transformation” vision, it announced in January 2023, Kisun Chung, CEO of HD Hyundai and HD KSOE, described four key visions, one of which was Ocean Mobility targeting next-generation digital ships that are eco-friendly as an answer to ocean sustainability.
This part of HD Hyundai’s vision is led by KSOE. Shortly after that announcement, KSOE concluded its MOU with Elcogen which sets out how the Companies will work together to design and prototype test large-capacity SOFC systems for use in ships and power generation.
SOFC and SOEC technology
KSOE and Elcogen also intend to work together to manufacture systems in South Korea, and further strengthen the company's collaboration in SOFC and SOEC technology.
HD Hyundai has chosen Elcogen’s SOFC and SOEC technology because:
- of its flexibility to produce electrical energy from a variety of fuels such as hydrogen, natural gas,ammonia, methanol, and biofuel;
- its suitability for ship engines and cogeneration as it is highly energy efficient and can use waste heat generated from high-temperature operation (600~1000°C); and
- it is considered the most advanced among all fuel cells developed to date.
Ocean Transformation strategy
Its SOFC systems will initially target providing auxiliary power onboard vessels before scaling up
This investment forms part of a larger investment by KSOE, demonstrating its commitment to delivering its Ocean Transformation strategy.
As part of HD Hyundai’s progress towards marine propulsion, its SOFC systems will initially target providing auxiliary power on-board vessels before scaling up to provide propulsion.
Innovation and shipbuilding
Chris Nash, Chairman of Elcogen, said, “We are delighted to welcome HD Hyundai as a close working partner and now as a shareholder."
"I believe this is a vote of confidence in our technology from a world pioneer in industrial innovation and shipbuilding. We look forward to building on this relationship as we continue working together.”
Solid Oxide technology
There is a huge amount of pressure for heavy industries to decarbonise and meet net-zero targets"
Enn Õunpuu, CEO of Elcogen, "There is a huge amount of pressure for heavy industries to decarbonise and meet net-zero targets, not least maritime transport."
"We are delighted that HD Hyundai has built upon our strategic partnership to invest directly into Elcogen, recognising the key role our proprietary Solid Oxide technology will have in leading the world to net zero, providing a clear and external validation of Elcogen.”
Sustainable future energy ecosystem
Kisun Chung, CEO of HD Hyundai/KSOE, “We expect this investment, and the strategic collaboration HD Hyundai and Elcogen will build together, will lay the cornerstone for realising the sustainable future energy ecosystem HD Hyundai envisions, which includes developing next-generation clean energy technologies and expanding the value chain capabilities of future core energy sources, including hydrogen.”
Elcogen was advised by Arrowpoint Advisory (part of Rothschild & Co).