Hyundai Motor Company signed a memorandum of understanding (MOU) with local energy firms Korea East-West Power (EWP) and Deokyang to generate electricity from hydrogen.

The pilot project conducted under the MOU will deliver a 1 megawatt (MW) hydrogen fuel cell power facility, with Hyundai Motor building the fuel cell system, EWP managing the facility and sale of electricity, and Deokyang supplying the hydrogen.

The use of Hyundai’s proprietary fuel cell technology in the pilot project marks the first time local technology is being used in a fuel cell power facility in Korea in lieu of the foreign technology upon which the market has been dependent.

The 1 MW power facility, scheduled to break ground later this year in Ulsan, will consist of two container-type 500 kW generator modules, each loaded with multiple power modules from Hyundai’s flagship fuel cell vehicle NEXO.

The facility can generate an annual supply of 8,000 MWh, enough electricity to power approximately 2,200 households at 300 kWh per month, while emitting zero greenhouse gases or pollution.

The hydrogen used in the facility will be byproduct hydrogen brought from a nearby petrochemical complex through a pipe network, reducing costs and making use of local energy sources.

The pilot project presents an opportunity for Hyundai Motor to take its fuel cell technology beyond the automotive industry to achieve economy of scale, which will subsequently lead to cost competitiveness, job creation, and growth of other related industries.

EWP will be able to secure an increased share of renewables in its energy mix, while Deokyang will be a step closer to bringing down the price of hydrogen through increased trade volume and stable management of supply and demand.

Hyundai Motor will collaborate closely with EWP and Deokyang to expand the scope of the project down the line.

Hyundai hopes to foster the fuel cell industry and other related sectors in the future, and will continue its commitment to leverage its fuel cell technology to build a Hydrogen Society in accordance with the FCEV Vision 2030 announced earlier this year.