Doosan Fuel Cell Terminates Two Fuel Cell Supply Contracts... "No Financial Impact"

Two More Contracts Canceled on April 2 Following March 31
Total Value Reaches 410 Billion KRW
"No Financial Impact," Says Company

Doosan Fuel Cell announced on the 2nd that two fuel cell supply contracts worth a total of approximately 410 billion KRW have been canceled. Including the cancellation announced on the 31st of last month, the total contract cancellations recently disclosed exceed 810 billion KRW.

The contracts canceled this time were the Jeonju Bio Green Energy Project and the China ZKRG Project, which were announced as secured contracts in October 2023 and December 2022, respectively.

In the case of the Jeonju Bio Green Energy Project, which was to supply 19.8MW of fuel cell systems, the contract with the client, Taeyoung Construction, was nullified and canceled due to the failure to conclude the PF financing agreement. The ZKRG Project was canceled by mutual agreement after the contract could not proceed normally for a long time due to poor business performance of the Chinese contract partner, ZKRG Smart Energy Technology.

Earlier, Doosan Fuel Cell announced on March 31st that it had canceled a fuel cell system supply contract signed in December 2022 with Korea Electric Power Technology, Kumho Technology, and LS Electric. This contract was scheduled to start after the issuance of the client's commencement instruction letter, but due to the long-term non-issuance of the instruction letter, it was canceled by agreement with the client on the 28th of last month.

A Doosan Fuel Cell official explained, "These projects were promoted outside the Clean Hydrogen Power Supply Obligation System (CHPS) and had been delayed for a long time, so there is no financial impact from this cancellation," adding, "By clearing all the long-delayed projects, uncertainties are removed, and the reliability of future business plans and order backlogs will be enhanced."

Doosan Fuel Cell secured a fuel cell project with a capacity of 127MW in last year's CHPS general hydrogen power generation bidding market. The company added, "Most of these projects will sign main equipment supply contracts this year, generating sales over two years until next year," and "Sales and new orders this year are expected to increase compared to the previous year."