SK Ecoplant Accelerates Localization of Solid Oxide Fuel Cells

Strengthening Cooperation with US Bloom Energy

Park Kyung-il, CEO of SK Ecoplant (left), and KR Sridhar, founder and CEO of Bloom Energy, are holding a contract and posing for a commemorative photo through an online video system.

[Asia Economy Reporter Kim Min-young] SK Ecoplant is strengthening its partnership with Bloom Energy in the United States and accelerating the localization of solid oxide fuel cells (SOFC).

SK Ecoplant announced on the 26th that it signed a total of five contracts, including a commercial cooperation agreement, with Bloom Energy on the 24th.

The signing ceremony was held via an online video system, with Park Kyung-il, CEO of SK Ecoplant, and KR Sridhar, founder and CEO of Bloom Energy, attending as representatives of both companies to finalize the agreements. Through these contracts, the two companies plan to extend the exclusive domestic supply rights and revise the joint venture agreement to expedite the localization of solid oxide fuel cells (SOFC).

SK Ecoplant entered the fuel cell business in 2018 by securing exclusive domestic supply rights for Bloom Energy's solid oxide fuel cells. In January last year, they established the joint venture 'BloomSK Fuel Cell' with Bloom Energy to localize SOFC technology. In October last year, they completed the BloomSK Fuel Cell manufacturing plant located in Gumi, Gyeongbuk, and began full-scale production of SOFC domestically. Initially, SK Ecoplant planned to expand production capacity to over 200MW after 2025, but through this contract, production exceeding 200MW will be possible starting in 2023. From the end of next year, finished products will be produced at the Gumi plant, and SOFCs intended for sale in the Asian market will also be primarily produced and exported by the domestic joint venture.

Additionally, the two companies signed a cooperation agreement granting SK Ecoplant exclusive global sales rights for fuel cell and water electrolysis equipment, as well as exclusive financing and EPC (Engineering, Procurement, and Construction) business rights within the United States. Furthermore, to develop technologies such as green hydrogen commercialization, they agreed to establish joint technology research centers called Hydrogen Innovation Centers in both Korea and the United States.

The companies also signed a stock purchase agreement to support funding necessary for next-generation SOFC and SOEC technology development and the establishment of new production plants. Through this agreement, SK Ecoplant will invest approximately 300 billion KRW.

Park Kyung-il, CEO of SK Ecoplant, stated, "This contract will significantly accelerate the localization of SOFC, expand domestic production volumes, and, through the exclusive global sales cooperation agreement, allow the domestic fuel cell industry to take a leap forward. At a time when technological solutions for decarbonized energy are needed, we will further strengthen our cooperation with Bloom Energy and establish ourselves as a global leader in the hydrogen fuel cell market."