HD Hyundai Acquires Leading Fuel Cell Company Convion For $80 Million

HD Korea Shipbuilding & Offshore Engineering, a subsidiary of HD Hyundai, has announced the acquisition of a majority stake in Convion, a leading fuel cell system developer based in Finland, for €72 million (about $80 Million).

Convion, founded in 2012 and based in Helsinki, specializes in Solid Oxide Fuel Cells (SOFC) and Solid Oxide Electrolyzer Cells (SOEC). These technologies are crucial for advancing hydrogen energy, the next generation of clean energy.

Convion is one of the few businesses worldwide that has successfully developed and commercialized SOFC systems now available on the market.

The hydrogen fuel cell industry has the potential for tremendous expansion. According to the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA), the industry is expected to grow from KRW 2.5 trillion in 2023 to KRW 17 trillion by 2030, with an average annual growth rate of 30%.

Due to the extensive use of marine hydrogen fuel cells and the commercialization of water electrolysis technology, the market could reach KRW 55 trillion by 2040.

HD Korea Shipbuilding & Offshore Engineering intends to capitalize on this growth through a dual strategy. Another company, HD Hydrogen, will operate Korea’s fuel cell business, focusing on power generation and maritime applications.

Meanwhile, Convion will continue to develop core fuel cell technologies and expand its commercial operations across Europe. The strategic planning is backed by a recent KRW 140 billion investment in HD Hydrogen, which will advance the company’s hydrogen fuel cell initiatives.

A representative for HD Korea Shipbuilding & Offshore Engineering stated that HD Hyundai is committed to leading the future of green shipbuilding by developing the world’s best clean energy technologies, such as hydrogen fuel cells and water electrolysis.

Additionally, to retain its market position, the company is exploring other energy sources, such as small modular reactors (SMRs).

HD Korea Shipbuilding & Offshore Engineering has also announced a €45 million investment agreement in October with Elcogen AS, another leading fuel cell company, to advance large-scale SOFC systems.

Reference: HD Hyundai