Doosan Fuel Cell wins long-term deals as hydrogen market grows

[Courtesy of Doosan Fuel Cell Co.]

Doosan Fuel Cell Co., a supplier of hydrogen fuel cells for power generation, is gaining momentum with a series of new orders as the hydrogen market sees robust growth.

The Doosan Group subsidiary announced in a statement published on Monday that it inked a long-term service agreement (LTSA) for its supplies to a 40-megawatt (MW) fuel cell power plant with power generation company UH Power. The agreement will be effective for two decades. The specific price remains confidential until August 9th, 2025, due to business privacy concerns.

Fuel cells represent an eco-friendly energy source as they generate electricity through the chemical reaction of hydrogen and oxygen. Hydrogen fuel cell plants require only one-hundredth the space of solar power plants and one-twentieth of wind farms to produce an equivalent amount of electricity, which explains why it is considered highly efficient among renewable energy sources.

Doosan Fuel Cell has recently seen significant growth as the hydrogen market expands rapidly. The company reported sales of 86.5 billion won ($63 million) and an operating profit of 2.2 billion won in the second quarter of 2024, which was a 75.9 percent increase in sales and a 340 percent rise in operating profit compared to the previous year. It also secured 20.2 MW in new orders in the first half of 2024.