HD Korea Shipbuilding invests $48 mn in Estonia’s Elcogen

HD Hyundai President Chung Ki-sun, left, and Elcogen founder Enn Ounpuu [Courtesy of HD Hyundai]

HD Korea Shipbuilding & Offshore Engineering Co., the mid-tier holding company for HD Hyundai Co.’s shipbuilding and maritime business, will invest 45 million euros (about $48 million) in Estonian clean energy company Elcogen AS in a bid to secure eco-friendly energy technology.

The shipbuilder announced on Wednesday that it signed the investment deal the same day with Elcogen AS, which manufactures solid oxide fuel cells (SOFC), an eco-friendly energy source. The investment agreement ceremony took place in central Seoul, with HD Hyundai President Chung Ki-sun, Elcogen founder Enn Ounpuu, and Estonian President Alar Karis in attendance.

The latest investment decision aims to accelerate the creation of a hydrogen value chain, with Chung known for his commitment to green energy, considering eco-friendly energy sources as the core future growth engine for his company. In January, he declared his intention to build a value chain that encompasses eco-friendly energy production, transportation, storage, and utilization as he unveiled the company’s “ocean transformation” strategy at this year’s Consumer Electronics Show in Las Vegas. According to industry sources, Chung is also deeply involved in green energy businesses, including SOFC investment.

SOFC is a device that converts chemical energy from eco-friendly fuels, including hydrogen, natural gas, ammonia, methanol, and biofuels, into electrical energy. It is highly energy-efficient and can harness waste heat generated during high-temperature operations at temperatures ranging from 600 to 1000 degrees Celsius.