Shipbuilding giant HD Hyundai Group has made a huge investment of €45m in Elcogen, a manufacturer of clean energy technology with an Estonian heritage.

Specifically Korea Shipbuilding & Offshore Engineering (KSOE), a member of HD Hyundai Group, invests €45m in Elcogen’s Solid Oxide technology to further deepen the collaboration on emission-free power generation systems, as well as green hydrogen production.

The deal sealed between Tallinn-based Elcogen and Korea´s KSOE is subject, among other things, to approval of Elcogen´s shareholders to the issue of the new shares to KSOE.

HD Hyundai and Elcogen will further strengthen collaborations, with a focus on marine propulsion systems and stationary power generation based on Elcogen’s solid oxide fuel cell (SOFC) and green hydrogen production based solid oxide electrolyser cell (SOEC) technology.

The investment will also lead to the expansion of Elcogen’s manufacturing capacity, as the company continues to build its new factory facility in Tallinn, Estonia, expected to boast a manufacturing capacity of up to 360MW to meet increasing product demand.

HD Hyundai is looking to form another critical step in realising its vision for the next generation of marine propulsion. Earlier this year, in January 2023, it announced its ‘Ocean Transformation’ vision.

KSOE and Elcogen also intend to work together to manufacture systems in South Korea, and further strengthen the companies collaboration in SOFC and SOEC technology.

Enn Õunpuu, chief executive of Elcogen said: “There is a huge amount of pressure for heavy industries to decarbonise and meet net zero targets, not least maritime transport. We are delighted that HD Hyundai has built upon our strategic partnership to invest directly into Elcogen, recognising the key role our proprietary Solid Oxide technology will have in leading the world to net zero, providing a clear and external validationof Elcogen.”

Kisun Chung, chief executive of HD Hyundai/KSOE noted: “We expect this investment, and the strategic collaboration HD Hyundai and Elcogen will build together, will lay the cornerstone for realising the sustainable future energy ecosystem HD Hyundai envisions, which includes developing next generation clean energy technologies and expanding the value chain capabilities of future core energy sources, including hydrogen.”