KHNP Achieves 50% Localization in SOFC Components, Bolstering Hydrogen Production Security

This spring at the 2025 Korea Energy Show in Busan, KHNP proudly announced we’ve crossed the 50% mark for localizing core components in solid oxide fuel cells (SOFC). It’s the fruit of a 2021 team-up with SK Ecoplant, Bloom Energy, and Bloom SK Fuel Cell. Beyond slashing import dependence, it beefs up our national energy security and kicks South Korea’s hydrogen production into high gear—another win for the sustainable energy movement.

Strategic Impact

• We’re trimming the fat: relying less on foreign suppliers now shields us from global supply chain headaches.
• Localizing stuff like electrolytes, blowers, supercapacitors, and absorption chillers means cheaper production and a smoother path for distributed power and CHP setups.
• This opens the door to exporting premium fuel cell technology systems—hello, U.S. and other big markets.
• Over 150 industry heavyweights (think IRENA, GGGI, and the Korea Hydrogen Association) were on hand, sealing new clean energy MoUs.
• Bottom line: South Korea’s now a heavyweight in the global green hydrogen race, pacing nicely toward its climate and energy goals.

Technical Snapshot

SOFCs run hot—literally 600–1000°C—and use solid ceramic electrolytes to shuttle oxygen ions, turning fuel into electricity at over 60% efficiency. Key locally made heroes include:

• Electrolytes: Homegrown ceramics that keep those ions moving.
• Blowers: Heat-resistant air movers that keep the system breathing easy.
• Supercapacitors: Rapid-fire backup units, perfect for data centers needing instant power.
• Absorption chillers: They steal exhaust heat for cooling, boosting overall output.

Having more than half these parts on our home turf means faster design tweaks, shorter lead times, and a beefed-up, resilient supply chain.

Market Implications

For investors and policymakers tracking the hydrogen economy’s ups and downs, this 50% localization is proof we’re on the move. KHNP foresees:

• A 10–15% cut in SOFC production costs within two years, thanks to local sourcing and slicker logistics—great news for budding investment opportunities.
• An edge on global bids, especially in the U.S., where fresh MoUs set up demonstration sites.
• 1,000+ new skilled jobs in manufacturing and R&D, solidifying South Korea’s industrial backbone.

Meanwhile, SK Ecoplant is lining up collaborations with top engineering firms, and Bloom SK Fuel Cell is gearing up to ramp production for both domestic needs and export orders.

International Collaboration

The big reveal happened at the 3rd International Forum on Clean Hydrogen, right alongside the Korea Energy Show at BEXCO in Busan. Attendees? Leaders from:

• International Renewable Energy Agency (IRENA)
• Global Green Growth Institute (GGGI)
• Korea Hydrogen Association

These groups signed a multilateral MoU with KHNP, pledging joint R&D, policy sync-ups, and pilot projects. With 150+ participants, the forum underlined our collaborative drive to build out hydrogen infrastructure worldwide.

What’s Next?

Looking forward, all eyes are on getting next-gen fuel cell technology modules to market and weaving them into today’s energy grids. Top priorities include:

• Locking in more feedstock for large-scale hydrogen production.
• Proving long-term performance of local parts in real-world trials.
• Expanding export routes to the EU and North America, riding on free-trade agreements.
• Cracking quality control and mass-manufacturing challenges.

With this localization push, South Korea isn’t just meeting its policy goals—it’s carving out a leadership role in the future of sustainable energy and industrial decarbonization. Stay tuned for updates at upcoming energy events; we expect more game-changing partnerships that will turbocharge global deployment of solid oxide fuel cells.