Press Release

On May 23, Doosan Corporation celebrated the completion of the construction of its new 10,744-square-meter fuel cell production facility at the second General Industrial Complex, Iksan-si, North Jeolla Province. The company invested about 40 billion won ($36 million) in building the facility. A fuel cell is an electrochemical device that converts hydrogen and oxygen into electricity and heat through a chemical reaction. Fuel cells are regarded as environmentally-friendly devices with high energy density resulting from their compact size, and high capacity utilization rates. The Iksan Factory is capable of producing 144 units of 440-kilowatt fuel cells per year, which adds up to an annual production capacity of 63 megawatts, the highest in Korea. Combined with its fuel cell factory in the U.S. state of Connecticut, the company will be able to respond more promptly to global demand. The event was attended by more than 150 people, including Hyunghwan Joo, minister of Trade, Industry and Energy; lawmakers Baesook Cho and Wonwook Lee; Hajin Song, governor of North Jeolla Province; Hun-Yul Jeong, mayor of Iksan; the CEOs of Korea Electric Power Corporation (KEPCO) and other public-sector power companies; representatives of client companies; and Doosan Group Chairman Jeongwon Park and other Doosan Group officials. By adopting an automated production system for stacks*, an essential fuel cell component, the Iksan Factory has drastically improved product quality and production capacity. Furthermore, the domestic production has allowed the company to achieve balance of plant**, and improve its cost competitiveness. *A stack refers to the assembly of individual cells, the smallest units that are capable of generating electrical energy from chemical reactions. **Balance of plant (BOP) refers to the ancillary equipment that helps supply the fuel and water required for the fuel cell reaction. The company has also established a stable supply and demand system by producing electrodes, another main fuel cell component that induces a catalyzed reaction of hydrogen and oxygen, in-house. Previously, the company depended on overseas suppliers to obtain electrodes. By concentrating its continuous R&D efforts on the development of clean technology, the company plans to launch the production of fuel cells that use by-product hydrogen*** fuel and supply them to the Daesan Petrochemical Complex in South Chungcheong Province. ***By-product hydrogen refers to hydrogen generated as a by-product from refinery processes. Hyunsoo Dong, president of Doosan Corporation, said: “With the completion of the construction of the Iksan Factory, we are in a better position to contribute to the growth of the renewable energy business and create jobs in Korea. By partnering with more than 80 domestic suppliers, the company also expects to benefit from the cost reduction and enhanced product competitiveness. Based on our experience and technology built in Korea, we plan to further expand to Europe, the Middle East and other new markets.” Attendees pose for a photo at the Doosan Fuel Cell Iksan Plant Completion Ceremony. From left to right: Yoonsuk Lee, Electro-Materials BG director; Hyunsoo Dong, president of Doosan Corporation; Doohyung Ryu, CEO of Hanwha Energy; Myungseok Ko, senior vice president of Korea Southern Power Co..; Dongseob Kim, technical director of Korea Western Power Co.; Jaeyoung Koh, center head of Korea Energy Agency; Hun-Yul Jeong, mayor of Iksan; Baesook Cho, lawmaker; Hajin Song, governor of North Jeolla Province; Taehee Woo, vice minister of Trade, Industry and Energy; Doosan Group Chairman Jeongwon Park; Hwan-Eik Cho, CEO of Korea Electric Power Corporation; Doosan Group Vice Chairman Geewon Park; Changkil Chung, CEO of Korea Midland Power Co.; Sunrok Oh, senior vice president of Korea Hydro & Nuclear Power Co.; Hajin Jeon, lawmaker; Jitaik Chung, vice chairman of Doosan Heavy Industries & Construction; Hyunsoon Lee, vice chairman of Doosan Corporation; and Hyungrak Chung, Fuel Cell BG director.