Hyundai Motor Starts Operation of 'Hydrogen Fuel Cell Power Generation System' Based on Nexo Hydrogen Electric Vehicle

Korea East-West Power and Deokyang Pilot Operation of Hydrogen Fuel Cell Power Generation System at Ulsan Thermal Power Plant
Power Generation System Using Purely Domestic Technology NEXO Fuel Cell Module... World’s First Case

[Asia Economy Reporter Yu Je-hoon] Hyundai Motor Company is establishing a hydrogen fuel cell power generation system based on the fuel cell technology of its hydrogen electric vehicle ‘Nexo’ and is starting power production. This is the world's first application of hydrogen electric vehicle technology to a fuel cell power generation system. Through this pilot project, Hyundai plans to contribute to the activation of the domestic hydrogen economy and also aims to secure a leading position in the hydrogen fuel cell market.

On the 20th, Hyundai Motor announced that it held a completion ceremony for a 1MW-class hydrogen fuel cell power generation system located at the Ulsan Thermal Power Plant in Nam-gu, Ulsan, together with Korea East-West Power and Deokyang, and began pilot operation. The completion ceremony, conducted via a non-face-to-face video conference, was attended by Ji Young-jo, President of Hyundai Motor’s Strategy and Technology Division, Song Cheol-ho, Mayor of Ulsan, Park Il-jun, President of Korea East-West Power, and Lee Hyun-tae, CEO of Deokyang.

Previously, the three parties signed a ‘Hydrogen Fuel Cell Power Generation Pilot Project Memorandum of Understanding (MOU)’ in 2019 and agreed to build a 1MW-class hydrogen fuel cell power generation system within the Ulsan Thermal Power Plant and to promote the pilot project. Hyundai Motor will operate the hydrogen fuel cell power generation system pilot project for two years from the completion ceremony in accordance with the agreement.

This hydrogen fuel cell power generation system is the world’s first case based on hydrogen electric vehicle technology. It consists of two container modules, each capable of producing 500kW of power, and is structured by bundling multiple vehicle fuel cell modules from Hyundai’s independently developed Nexo. Since it uses technology applied in hydrogen electric vehicles, it features faster output control compared to conventional fuel cell power generation methods.

A Hyundai Motor official explained, "Unlike existing fuel power generation systems, Hyundai’s vehicle fuel cell technology is applied, enabling real-time rapid adjustment of electricity production for efficient power supply," adding, "This can also complement the power supply variability issues inherent in renewable energy sources such as solar and wind."

Designed as a structure that bundles multiple Nexo fuel cell modules, it is easy to expand supply capacity in the future. Hyundai Motor stated, "The supply capacity can be expanded to hundreds of megawatts depending on the number of containers."

According to Hyundai Motor, this hydrogen fuel cell power generation system operates by receiving by-product hydrogen (hydrogen generated as a by-product in the manufacturing process of petrochemical products) produced in the Ulsan petrochemical complex. The annual power production is about 8,000 kWh, which is enough to supply electricity to approximately 2,200 households based on a monthly usage of 300 kWh.

Hyundai Motor and the other two companies expect that this pilot project will significantly increase the localization rate of parts in the hydrogen fuel cell power generation market. In the past, most fuel cells for power generation were based on overseas technology, resulting in high costs for parts replacement and maintenance. However, with the introduction of a hydrogen fuel cell system developed purely with domestic independent technology through this project, if the market expands, it is analyzed that it will also lead to price reductions for power generation fuel cells and hydrogen electric vehicles.

Hyundai Motor has recently taken the lead in building a hydrogen ecosystem by launching the hydrogen fuel cell brand HTWO through its ‘2025 Strategy.’ The goal is to expand the hydrogen business centered on four major bases in Korea, Europe, the United States, and China, and to sell 700,000 hydrogen fuel cells by 2030.

They are also increasing hydrogen fuel cell-related facilities. Recently, Hyundai Mobis is promoting the expansion of its third plant in Chungju, and signed an investment plan with the government of Guangzhou Development Zone, Guangdong Province, China, to establish a hydrogen fuel cell system production and sales corporation. Hyundai Motor’s hydrogen base in China will begin construction next month and is expected to produce 6,500 units annually starting from the second half of 2022.

President Ji said, "This project is very meaningful in that it builds cooperative relationships and gains experience in equipment operation in the field together with power generation companies," adding, "We will strive to commercialize through a successful pilot project, expand fuel cells to other industries, and promote the hydrogen industry expansion through economies of scale."