Hanwha looks to buy US hydrogen storage tank maker

Hanwha Solutions Corp. is seeking to acquire 100% of a US hydrogen storage tank manufacturer worth tens of millions of dollars, a local newspaper reported on Dec. 23, shortly after the South Korean company unveiled a plan to raise $1 billion through a new share issue.

“To use hydrogen as an energy source, it needs to be compressed at high pressure. Given this, securing the production facility of high-quality storage tanks will be the starting point for developing hydrogen,” the Maeil Business Newspaper quoted an unnamed investment banking source as saying.

It did not identify the English name of the target company, nor further details.

The report came after Hanwha Solutions said on Tuesday it was preparing to raise 1.2 trillion won ($1 billion) in a rights offering to finance new growth businesses such as solar energy and green hydrogen.
Including the 1.2 trillion won from new share sales, the company plans to invest 2.8 trillion won in eco-friendly businesses by 2025 to transform from a manufacturer into a total energy solutions provider.

It plans to acquire solar energy and hydrogen-related companies.

In 2018, Hanwha General Chemical Co. and its affiliate Hanwha Energy Corp. invested a combined $100 million in the US hydrogen fuel cell truck maker Nikola Motor for a 6.13% stake.

Along with the stake investment, Hanwha General secured priority rights to operate Nikola's hydrogen fueling stations set for construction. If exercised, that means it would have rights over a network of more than 700 truck hydrogen fueling stations Nikola plans to build across the US and Canada by 2028.

Yeonhee Kim edited this article.