[Asia Economy Reporter Hyungsoo Park] Donga Chemical is showing strong performance. It appears that the news of Hyundai Motor, SK, POSCO, and Hyosung Group, which have led the Korean hydrogen industry ecosystem, accelerating the establishment of a private consultative body and strengthening the 'K-Hydrogen Alliance' has influenced the stock price. Donga Chemical is reinforcing its growth engine through a triangular alliance of electric vehicles, hydrogen vehicles, and fuel cells. Peace Industry surged to the price limit, increasing interest in hydrogen-related stocks. There is a noticeable shift in investor interest from nuclear power-related stocks to hydrogen-related stocks.
As of 10:05 AM on the 11th, Donga Chemical is trading at 14,250 KRW, up 6.74% from the previous day.
Donga Chemical is a manufacturer of automotive, home appliance, and industrial special rubber parts. Its main products include automotive intake and exhaust hoses, battery pack gaskets, and door gaskets that absorb vibration and provide cushioning for drum washing machines. KB Securities explained in a stock report, "It is expected to emerge as a representative small-cap company related to the Green New Deal," adding, "Battery pack gaskets for electric vehicles are supplied to Hyundai Motor, US GM, and China’s First Automobile Works, and there are plans to expand production capacity in the future." It further added, "Sales of battery pack gaskets for electric vehicles increased sharply from 5.5 billion KRW in 2019 to 10.5 billion KRW in 2020, indicating steep growth prospects."
The growth potential of its subsidiary is also increasing. Donga Fuel Cell is developing a 5kW-class high-temperature polymer electrolyte membrane fuel cell system. Approximately 90% of the performance and electrical environment tests and inspections, covering about 170 items according to the inspection standards of the Korea Gas Safety Corporation, have been completed for Donga Fuel Cell’s 5kW-class high-temperature polymer electrolyte membrane fuel cell (HT-PEMFC) system. Previously, Donga Fuel Cell completed the technical review by the Korea Gas Safety Corporation in October last year and passed the final inspection for gas product manufacturing facilities in December of the same year.
The building-use HT-PEMFC system, regarded as next-generation fuel cell technology, enables triple combined heat and power generation producing electricity, heating, and cooling, offering superior operational economics compared to existing fuel cell systems that supply only electricity and heating.
The HT-PEMFC developed by Donga Fuel Cell is expected to significantly expand the building-use fuel cell market by utilizing high-temperature fuel cell thermal energy exceeding 55% (overall efficiency 94%) and greatly contribute to the implementation of the government’s hydrogen economy initiatives and climate change response.
The HT-PEMFC system operates at 150?160°C, more than twice the 60?70°C operating temperature of conventional PEMFCs. The higher operating temperature provides advantages such as high resistance to impurities, elimination of humidifiers, condensate treatment devices, and CO removal equipment, resulting in a simpler internal structure and significant cost reduction potential.
Meanwhile, governments and companies worldwide are actively striving to secure the hydrogen economy, which is emerging as a future growth engine. Since US President Joe Biden set the goal of achieving carbon neutrality by 2050, the United States has been focusing its capabilities on supporting the hydrogen economy.
On the 7th (local time), the US Department of Energy referred to clean hydrogen energy as a "game changer" and set a goal to reduce the cost of clean hydrogen production by 80% within ten years. It also announced plans to establish a comprehensive government support system to back hydrogen energy research and development (R&D) and related infrastructure development.
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