[Upcoming Hydrogen Economy] Hanwha, Vertical Integration of 7 Companies from Water Electrolysis to Co-Firing Power Generation...

1.3 Trillion KRW Investment by 2030
Development of Anion Exchange Membrane Water Electrolysis
Operable with Small-Scale Facilities
Cheaper Production than Existing Methods
Acquisition of PSM and Thomassen Energy
Demonstration Project Applying Domestic Gas Turbines

Hanwha Group has established vertical integration in the hydrogen economy, covering everything from hydrogen production to storage, transportation, distribution, and charging. The key differentiator from other companies is its ability to leverage its strong global competitiveness and expertise in renewable energy. Kim Dong-kwan, Vice Chairman of Hanwha Group and eldest son of Chairman Kim Seung-yeon, attended the launch event of the hydrogen business consortium in September 2021 as Hanwha’s representative in place of his father, stating, “Based on our experience and know-how in the solar power sector, we have already built a ‘hydrogen value chain.’” In the same year, Hanwha announced an investment of 1.3 trillion KRW in the hydrogen business by 2030.

Seven Hanwha affiliates are jointly advancing the hydrogen business. Hanwha Solutions is responsible for production and storage. The Q CELLS division plans to produce large quantities of green hydrogen by linking renewable energy generated from solar power with water electrolysis technology from the Chemicals division. Water electrolysis is a technology that produces hydrogen by electrolyzing water without emitting carbon dioxide. Hydrogen produced using electricity generated from renewable energy is called green hydrogen.

Hanwha Hydrogen Value Chain
[Image source=Hanwha]

The water electrolysis technology being developed by Hanwha Solutions uses an anion exchange membrane (AEM) electrolysis method. This next-generation water electrolysis technology can operate on a smaller scale than the currently used alkaline electrolysis method and produce hydrogen more cheaply than polymer electrolyte membrane (PEM) electrolysis. In 2021, the company set commercialization as a goal for this year and recruited Dr. Jeong Hoon-taek, formerly of the Los Alamos National Laboratory (LANL) in the U.S., as head of the hydrogen research center. However, commercialization this year remains uncertain. A Hanwha Solutions official said, “We are still at the lab stage (research and development), and it is difficult to specify a commercialization timeline at this point.”

Solar Power Plant and Water Electrolysis
[Image Source=Hanwha]

Hanwha Impact (formerly Hanwha General Chemical) acquired U.S.-based PSM and the Netherlands’ Thomassen Energy (TE) in 2021, both of which possess core technologies for LNG and hydrogen co-combustion. These companies have successfully commercialized gas turbine modification technologies for hydrogen co-firing in the U.S. and Europe. Hanwha Impact is conducting demonstration projects applying these technologies to domestic gas turbines. At the Daesan plant, they are modifying a large 80MW-class gas turbine owned by Korea Western Power to verify whether it can generate electricity with a 50% hydrogen co-firing rate and 50% LNG. A 50% hydrogen co-firing rate is the world’s first. The higher the hydrogen co-firing rate, the greater the greenhouse gas reduction effect. When the hydrogen co-firing rate is 50%, carbon emissions decrease by approximately 23% compared to full LNG combustion.

A view of the gas turbine power plant in Rotterdam, Netherlands, operated by Uniper, the largest power supplier in Europe. Hanwha Impact's subsidiary, Netherlands-based Thomassen Energy, won a contract last May to modify a 123MW gas turbine to enable 30% hydrogen co-firing.
[Photo by Hanwha Impact]

To localize the technology, Hanwha Impact established a dedicated organization and recruited external research personnel. A Hanwha Impact official said, “The acquisition of these two companies marked the first time in Korea that hydrogen co-firing power generation technology was secured. Through the demonstration project, we are proving that hydrogen co-firing power generation is feasible by applying these technologies to domestic power generation company gas turbines.”

Hanwha Impact transferred hydrogen business operations, excluding the demonstration project, to Hanwha Power Systems. Hanwha Power Systems supplies hydrogen charging systems composed of hydrogen compressors, high-pressure vessels, and cooling devices. Hanwha Corporation is responsible for establishing domestic import-export infrastructure and managing overseas clean hydrogen production and domestic supply.

Hanwha's Green Hydrogen Energy System
[Image source=Hanwha]

Hanwha Energy operates a 50MW hydrogen fuel cell power plant in the Daesan Industrial Complex, Chungnam Province. It is the world’s first and largest byproduct hydrogen fuel cell power plant. It produces eco-friendly energy by utilizing byproduct hydrogen generated from Hanwha Total’s petrochemical processes. Hanwha Aerospace won a national project from the Ministry of Trade, Industry and Energy last year and is developing hydrogen fuel cells for aviation. Hanwha Ocean, which recently completed acquisition procedures and changed its name from Daewoo Shipbuilding & Marine Engineering, is also moving quickly to secure a leading position in hydrogen storage and transportation technology markets. Following Korea’s first hydrogen fuel cell tugboat, it is researching large-scale liquefied hydrogen carrier technology.