Hyundai Motor Company held a ground breaking ceremony for its new hydrogen fuel cell production plant in Ulsan, South Korea, as the automaker steps up its efforts to transition to zero emission vehicles. Fuel cell systems function as onboard power generators, generating electricity through electrochemical reactions between hydrogen and oxygen without emitting harmful gases.

The ceremony was attended by Hyundai Motor Group’s vice chairman Jaehoon Chang; South Korea’s Minister for Climate, Energy and Environment, Sungwhan Kim; the Vice-Minister for Trade, Industry and Resources, Shinhak Moon; several National Assembly members; and a number of international hydrogen industry leaders. The ceremony was timed to coincide with the Asia-Pacific Economic Cooperation (APEC) Summit in South Korea.

The KRW 930 billion (US$ 650 million) plant, with integrated chemical processing and assembly operations, is scheduled to be completed in 2027 on the site of a former internal combustion engine (ICE) transmission plant. It will have an initial annual production capacity of 30,000 next-generation fuel cell units and electrolysers for various mobility applications, including passenger vehicles, commercial trucks and buses, construction equipment, and marine vessels. They will be marketed under Hyundai Motor Group’s HTWO hydrogen brand.

Jaehoon Chang said in a statement: “This plant embodies Hyundai Motor Group’s strategic commitment to advancing the hydrogen society transition. It will serve as a critical foundation for securing national economic growth momentum and establishing Korea’s leadership in the global hydrogen industry.”

With the new facility, HMG said it “aims to position itself at the forefront of global hydrogen technology through two key products.” The next-generation hydrogen fuel cell system are expected to offer enhanced power output and durability compared with current systems, while achieving a “price competitiveness to lead the global market.”.

The plant will also produce high-efficiency polymer electrolyte membrane (PEM) electrolysers, a first for South Korea, with a targeted local content of 90%. Electrolysers generate high-purity hydrogen from water without carbon emissions.

HMG confirmed it had previously developed an electrolyser stack, and in February it completed a 1 MW containerized electrolyser system capable of producing over 300 kg of high-purity hydrogen daily. “A 5 MW-class large-scale project is currently under development, with the goal of establishing a complete green hydrogen ecosystem,” the company added.