Doosan sets sights on hydrogen business as future growth engine

South Korea’s Doosan Group has launched a task force to foster its hydrogen fuel cell business as one of its key growth drivers.

The heavy machinery and power equipment-focused group also plans to aggressively seek mergers and acquisitions in the hydrogen-related business.

The group said on Apr. 20 that it is launching a task force to put under one roof hydrogen experts of its affiliates, including Doosan Fuel Cell Co., Doosan Heavy Industries & Construction Co. and Doosan Mobility Innovation Co., a producer of portable fuel cell power packs.

The new team established under the group’s company Doosan Corp. will work out strategies for projects covering the entire hydrogen value chain from production to distribution to utilization.

Je Hu-seok, an executive at Doosan Fuel Cell, will head the new team.

Doosan Fuel Cell is specialized in making phosphoric acid fuel cells (PAFC), a type of fuel cell that uses liquid phosphoric acid as an electrolyte.

The company is also working with a British fuel company, Ceres Power Co., to develop another type, called a solid oxide fuel cell (SOFC).

Doosan Fuel Cell, which has posted more than one trillion won in annual sales in the past three years, aims to achieve 1.5 trillion won ($1.35 billion) in revenue by 2023.

Doosan Mobility has strength in hydrogen-powered mobility. In 2018, it unveiled the world’s first mass-produced hydrogen fuel cell drone with a flight time of up to two hours and a 5 kg payload.

Doosan Heavy Industries is building a hydrogen liquefaction factory in Changwon, South Kyongsang Province, set to be completed by 2022.

Korea’s major conglomerates -- Hyundai Motor Group, Hyundai Heavy Industries Group, SK Group and Hanwha Group -- have been scurrying to boost their presence in the hydrogen market, as hydrogen emerges as a future growth engine on the back of the government's Green New Deal aimed at fostering environmentally friendly industries.

Write to Hyung-Kyu Kim at khk@hankyung.com
In-Soo Nam edited this article.