Hydrogen Fuel Cells: Doosan’s ₩412B Ulsan Service Deal Signals Industrial Shift

Didn’t see this coming? Well, I did. Doosan Fuel Cell just locked down a 20-year, ₩411.8 billion (≈$308 million) service agreement with Ulsan Eneroot No.2 Corporation to operate and maintain a by-product fuel cell power plant in Ulsan—an exciting example of hydrogen fuel cells in action.

Core Snapshot

On September 5, 2025, the service kicked off at the Ulsan-Mipo industrial complex. Instead of hooking up an electrolyzer, the plant taps hydrogen recovered as an industrial by-product and feeds it into Phosphoric Acid Fuel Cell (PAFC) modules. Doosan Fuel Cell supplied the main tech, while Ulsan Eneroot No.2 handles daily operations. This deal not only locks in recurring revenue for Doosan but also cements Ulsan’s bid to beef up its hydrogen infrastructure and champion sustainable energy.

What It Means

First, Doosan secures steady, long-term cash flow beyond one-off equipment sales. Second, Korea’s national strategy puts by-product feedstocks front and center in its hydrogen production playbook—and this partnership proves that approach works. Finally, Ulsan shores up its reputation: with massive petrochemical and refining complexes already in place, it can turn flared hydrogen into clean power with minimal extra capex.

Technical Focus

Here’s where it gets interesting: instead of wasting or flaring hydrogen, the by-product gas heads straight to PAFC stacks running at about 200 °C. Those phosphoric acid electrolytes deliver 40–50 % efficiency at scale and respond quickly to load changes. Hooked into a Virtual Power Plant network, they help stabilize the grid—unlike intermittent renewables. Best part? You skip pricey compressors and reformers because the hydrogen’s already onsite.

Strategic Angle

Doosan’s play isn’t just about selling stacks; it’s about locking in 20 years of service fees. We’ve seen similar models in wind and solar, but hydrogen’s high-value equipment and deep expertise push margins higher. For Ulsan Eneroot No.2, outsourcing O&M to a specialist de-risks delivery and guarantees performance. Plus, it aligns with South Korea’s target of 15 GW of fuel cell technology capacity by 2040.

Context Check

Ulsan isn’t just another port city—it’s home to shipyards, petrochem plants, and refineries. Since 2018, government subsidies and private investments have sprouted the Green Hydrogen Town, pipeline networks, and mobility demos. This project builds on earlier 50 MW-class fuel cell sites and marks the first major service-driven deal of its kind here.

Our Take

Look, we’ve heard the hydrogen hype before, but this isn’t just talk—it’s a multi-hundred-million-dollar bet. By focusing on by-product streams, you sidestep the green-vs-gray debate, at least initially. That said, supply can fluctuate: if petrochemical runs dip, hydrogen feedstock shrinks. The contract has clauses to handle that. Still, this structure smartly shifts Korea from demonstration to real-world fuel cell technology rollouts and moves the needle on scaling hydrogen fuel cells.

Looking Ahead

Keep an eye on performance data and any hiccups in hydrogen routing. If this model scales, we could see similar service-centric deals pop up in Saudi Arabia and the Gulf, where by-product hydrogen is abundant. For now, Ulsan just raised the bar in sustainable energy.