Hydrogen, Solar Power, Satellites... 'The Advance of Hanwha'

Hanwha Systems Data Center Integrated Control Room

[Asia Economy Reporter Park So-yeon] There is a group that stands out particularly in the new year. It is Hanwha Group. Recognized as a company leading the preparation for the post-coal era, Hanwha Group is strengthening its eco-friendly portfolio at the start of the year. While other companies are just taking their first steps in fields such as solar power, hydrogen, and satellites, Hanwha Group is evaluated to be ahead through proactive technology development and aggressive mergers and acquisitions.

Six Hanwha Financial Companies Declare Coal Phase-Out Finance

Recently, six financial companies under Hanwha Group have united in their commitment to 'coal phase-out finance.' Hanwha Life Insurance, Hanwha General Insurance, Hanwha Investment & Securities, Hanwha Asset Management, Hanwha Savings Bank, and Carrot General Insurance have agreed not to participate in project financing for the construction of coal power plants domestically and internationally, nor to purchase bonds issued by special purpose companies (SPCs) for coal power plant construction at home or abroad. Even general bonds will not be purchased if it is clear that they are intended for coal power plant construction. Instead, they have announced plans to continuously expand investments in eco-friendly assets such as renewable energy. The background of this decision lies in Hanwha Group’s responsibility to actively respond as a global leader in renewable energy and to lead environmental management for the carbon-zero era. Of course, this transformation to meet the carbon-zero era is also expected to benefit Hanwha Group’s profitability in the mid to long term.

Hanwha Solutions Aims to Become a Global Leader in Solar and Hydrogen

Hanwha Solutions has decided to invest in new growth industries such as solar power and green hydrogen through a paid-in capital increase of 1.2 trillion KRW. It has also set a goal to become a total energy solutions company by 2025 through active mergers and acquisitions and new technology development. The company is attempting to transform from mainly manufacturing solar cells and modules to providing integrated solar energy solutions. Entering the hydrogen energy industry is another new project planned by Hanwha Solutions. The company is expanding its business across the entire hydrogen value chain, including production, storage, distribution, and charging. It has started the first green hydrogen production complex project in Korea. The company is developing water electrolysis technology that produces hydrogen by splitting water using electricity generated from renewable energy, as well as tanks used for hydrogen storage and transportation. Recently, it acquired 100% of the shares of Cimarron, a U.S. high-pressure tank company. Cimarron is a startup with world-class high-pressure tank technology that originated as an in-house venture at NASA. It has supplied high-pressure tanks to SpaceX, the commercial spacecraft founded by Tesla CEO Elon Musk, including the SpaceX Falcon 9 rocket. The acquisition of Cimarron is interpreted as both an expansion of Hanwha Group’s hydrogen business and preparation for the space industry.

Hanwha Expands from Defense Industry to Space Industry

Following the acquisition of overseas companies related to satellite antennas, Hanwha Group has transformed into a leading company in the space and satellite business by acquiring Setrec Eye, Korea’s first specialized satellite company. Hanwha Aerospace recently secured a 20% stake in Setrec Eye and plans to ultimately acquire about 30%. Setrec Eye was founded in 1999 by the core personnel who developed Korea’s first satellite, Uri Byul 1. It is currently the only company in Korea capable of directly developing and producing key products such as satellite bodies, ground systems, and electro-optical payloads. Hanwha Group plans to create synergy among its affiliates by having Hanwha Aerospace handle satellite launch vehicles, Hanwha Systems manage satellite communication services, and Hanwha Corporation focus on solid fuel business. Recently, the main driver of space development has shifted from the government to the private sector. A major issue in the global space industry is 'space internet,' that is, low-earth orbit satellite communication business. By launching satellites from the ground to build communication networks equivalent to 5G and 6G, it enables fast internet access not only in underdeveloped countries and rural areas where internet is poor but also in mountainous regions, oceans, and the air, unlike existing internet networks. As international needs and corporate economic interests converge, competition among private companies to secure satellite technology is intensifying. SpaceX, Amazon, Apple, and the UK’s OneWeb are fiercely competing in the low-earth orbit satellite communication business. The market size for satellite communication antennas is expected to reach 50 trillion KRW by 2026.