Hanwha Solutions acquires US hydrogen tank maker Cimarron, to invest $100 mn

Hanwha Solutions Corp. has acquired a 100% stake in Cimarron Composites LLC, a US hydrogen storage tank manufacturer, as the South Korean energy solutions company bets on the growth of hydrogen-fueled cars.

Hanwha said in a Dec. 28 statement that it plans to complete the deal by April 2021 and invest a total of $100 million in Cimarron, including the acquisition price, by 2025.

The takeover will help Hanwha secure advanced technology in hydrogen tanks for vehicles, hydrogen transportation trailers and high-pressure tanks for charging stations, it said.

In 2008, Tom DeLay, a former National Aeronautics and Space Administration (NASA) researcher, founded Cimarron to produce composite overwrapped pressure vessels used in rockets for spacecraft, including the Falcon 9 Rocket for Elon Musk’s SpaceX.

The company has developed Neptune, a carbon fiber reinforced polymer tank, which can transport 1,200 kg of hydrogen gas in a standard 40-foot container – four times the volume of hydrogen carried in steel tanks widely used in Korea.

“Through the acquisition of Cimarron, we will further upgrade our tank technology and expand our global business," said Ryu Doo-hyung, head of Hanwha Solutions' advanced materials division.

He added the company aims to become the world’s top player in the high-pressure tank market by 2030.

Hanwha Group has been nurturing the green hydrogen business as one of its next growth engines.

Write to Jae-Kwang Ahn at ahnjk@hankyung.com
In-Soo Nam edited this article.