SK Ecoplant Raises 45 Billion KRW Blind Fund to Lead the Fuel Cell Market

Signing of MOU with MDM Asset Management

SK ecoplant is launching a blind fund specialized in Bloom Energy's solid oxide fuel cell (SOFC) power generation business. Through this, it plans to activate financial procurement for awarded projects in the hydrogen power bidding market and lead the fuel cell market.

SK ecoplant announced on the 22nd that it signed a memorandum of understanding (MOU) with MDM Asset Management on the 19th at its headquarters in Susong-dong, Jongno-gu, Seoul, to establish a general hydrogen power bidding market (CHPS) fuel cell business fund. The signing ceremony was attended by Bae Seong-jun, head of SK ecoplant's energy business division, Jang Seong-su, CEO of MDM Asset Management, and other officials from both companies.

On the 19th, at the SK Ecoplant headquarters in Susong-dong, Jongno-gu, Seoul, Bae Seong-jun, Head of Energy Business Division at SK Ecoplant (right), and Jang Seong-su, CEO of MDM Asset Management (left), are posing for a commemorative photo at the business agreement ceremony for raising a fund for the fuel cell project in the general hydrogen power generation bidding market (CHPS). Photo by SK Ecoplant

MDM Asset Management is the asset management company of MDM Group, a leading company in real estate development and finance. Recently, it has been actively discovering and investing in assets with high future value, such as renewable energy and ESG (environment, social, and governance) sectors. It also has a high understanding of the fuel cell business, participating in projects such as Gangneung Fuel Cell, Chuncheon Fuel Cell, and Songsan Fuel Cell together with SK ecoplant.

Through this agreement, the two companies plan to establish a blind fund worth a total of 45 billion KRW, directly participating to secure financial support feasibility. The established fund will mainly be used for subordinated loans and equity financing of SOFC power generation projects awarded in the hydrogen power bidding market. This complements the existing RPS (Renewable Portfolio Standard) market, where Renewable Energy Certificates (REC) support was provided.

SK ecoplant expects that through the fund establishment, it will be able to enhance not only the economic feasibility of the SOFC fuel cell business but also its financial strengths. Financial procurement has become a prerequisite for project commencement, and the importance is increasing as penalties are imposed if commercial operation of the power plant (COD, Commercial Operation Date) is not achieved within 24 months after the power purchase agreement.

An SK ecoplant official said, “By utilizing the fund to minimize the financial procurement period for the SOFC power generation business, we expect the commercialization to accelerate. We also anticipate synergy with MDM Asset Management, which has accumulated years of experience in the fuel cell business and possesses know-how in renewable energy and related infrastructure investments.”