South Korea’s largest private power-generating company POSCO Energy gained a technology to independently produce core parts of fuel cells in five years since the company commenced the fuel cell business.
A fuel cell is an electrochemical device that combines hydrogen and oxygen in a chemical reaction to produce electricity, useable heat and water. Fuel cells are emerging as a new eco-friendly source of generating renewable energy.
POSCO Energy said Monday (local time) that it signed a contract with FuelCell Energy, an US manufacturer of ultra-clean fuel cell power plants, to license the technology to build core components of fuel cells, becoming the first Korean company to secure the technology.
The deal is seen as a stepping stone for POSCO Energy to gain a leading position in the global market as the US company is recognized as a global leader in the efficiency of power generation. FuelCell Energy topped the rank in the global market for fuel cells for power generation with 180 megawatts (MW) of installation output and POSCO Energy the third with 53 MW.
POSCO Energy reckoned that this contract would enable the company to cut production costs and thus strengthen its price competitiveness. The power company plans to enter Southeast Asia and the Middle East, where fuels are cheap and the demand for electricity runs high.
The Korean company will reportedly build 300kW fuel cell power plants in Jakarta, Indonesia in February next year and expand its presence in Japan, Southeast Asia, and the Middle East.
The global fuel cell market is forecasted to more than double from 23 trillion won ($21.09 billion) in 2013 to 44 trillion won in 2020.
[Written by Won-sup Yoon - Sun-ah Kim / edited by Soyoung Chung]
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