[Asia Economy Reporter Hyunseok Yoo] VT GMP, which is promoting hydrogen fuel cell power generation business as a new growth engine, is showing strong performance. It appears that the news of the U.S. government under Joe Biden supporting the hydrogen economy has influenced the stock price.
As of 9:43 a.m. on the 9th, VT GMP was trading at 9,510 KRW, up 2.81% (260 KRW) from the previous trading day.
According to major foreign media, the U.S. Department of Energy has set a goal to reduce the price of hydrogen produced from clean power sources such as renewable energy and nuclear power by 80% over the next 10 years, targeting 1 dollar per kilogram.
Jennifer Granholm, Secretary of Energy, stated in a press release that "clean hydrogen will bring about a great transformation" and "will lead to the creation of high-quality clean energy-related jobs and achieve net-zero emissions by 2050."
The Department of Energy has established the ‘Energy Earthshots’ plan to promote the spread and development of clean energy in order to achieve greenhouse gas emission reduction targets.
Hydrogen can be used in fuel cells that do not emit carbon dioxide. Clean hydrogen, produced by electrolyzing water using renewable energy, is encouraged by many governments for use in automobiles, ships, and power plants, but currently, high costs remain an obstacle.
The hydrogen economy is also a key factor behind the joint entry of Korea and the U.S. into the overseas nuclear power plant market at the Korea-U.S. summit. Small Modular Reactors (SMR) are one of the essential elements for equipping green hydrogen production capabilities. SMRs are called game changers in the hydrogen economy era due to their eco-friendliness and stability. Major countries such as the U.S. and China are putting their all into hydrogen technology development from the perspective of energy security. Leading companies in each country have also entered the hydrogen race.
VT GMP signed a purchase contract for the ‘Gumi Region High-Tech Valley site’ distributed by the Korea Industrial Complex Corporation for the hydrogen fuel cell power generation business the day before. VT GMP plans to obtain approval from the Ministry of Trade, Industry and Energy and the Ministry of Economy and Finance within this year, start construction of the first phase project, the ‘19.8MW fuel cell power generation project,’ by the end of the fourth quarter, and aims to complete it in 2022. Korea Western Power, Mirae Asset Energy Infrastructure Asset Management, and SK Engineering & Construction are expected to participate in this project.
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