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Eco-friendly energy

Hanwha Solutions to raise $1 bn to boost eco-friendly energy businesses

By Dec 22, 2020 (Gmt+09:00)

Hanwha Solutions to raise /> bn to boost eco-friendly energy businesses

Hanwha Solutions Corp. is preparing to raise 1.2 trillion won ($1.1 billion) through rights issues to shore up new growth drivers, particularly its solar energy and green hydrogen businesses, according to the company's regulatory filing on Dec. 21.

The paid-in capital increase was approved during a board meeting on Monday. New shares will be issued on Jan. 19, 2021, with the public subscription set for Feb. 24 and 25.

The hefty offering heralds the company’s plans to transform from a manufacturer to a total energy solutions provider by 2025, backed by aggressive M&A activities and new technology developments.

CEO Kim Dong-kwan
CEO Kim Dong-kwan
It is also the first large-scale capital increase driven by Kim Dong-kwan since he was promoted as the new chief executive in September.

“We’re investing in solar energy and green hydrogen businesses to move forward as a global leading business in the eco-friendly energy sector," said a Hanwha Solutions official.

Green hydrogen is produced through electrolysis, in which renewable energy is used to break down water into hydrogen and oxygen.

Hanwha Solutions also shared a detailed roadmap on how the funds will be used. The company will invest 1 trillion won ($904 million) to expand its research and development for next-generation solar energy materials. The remaining 200 billion won ($181 million) will be injected into the green hydrogen segment.

In addition to developing new technologies, Hanwha Solutions is keen on M&As, focusing on companies with promising hydrogen technology portfolios. The company plans to penetrate into the US and Europe's eco-friendly energy markets, as it has already solidified its footing at home.

Starting in 2021, Hanwha Solutions plans to invest 2.8 trillion won, including the capital increase, into the eco-friendly operations over the next five years.

The company aims to post 21 trillion won ($19 billion) in revenue and 2.3 trillion won in operating profit in 2025. In particular, the company intends for 12 trillion won, over half its target revenue, to come from its solar energy operations.

Hanwha Solutions launched earlier in January when Hanwha Chemical merged with Hanwha Q Cells and Hanwha Advanced Materials. The company is made up of the chemical, solar energy, and advanced materials businesses.

Write to Kyung-min Kang at

Danbee Lee edited this article.
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