Hanwha Group Focuses on Investing in Future Growth Drivers

Hanwha Group is stepping up its efforts to secure future growth drivers through large-scale investments in the hydrogen, aerospace, and renewable energy fields.

In the past two years, the group has made big investments in aerospace. Hanwha Aerospace and Hanwha Systems have gained experiences in the aerospace business through defense projects. They are now focusing on expanding their businesses by acquiring promising companies at home and abroad.

After making a 30 billion won investment in U.S. private aircraft company Overair for a 30 percent stake, Hanwha took over the U.K.'s satellite communication company Pager Solution for 20 billion won. In May 2021, it invested 33.5 billion won in U.S. satellite communication antenna company Kaimeta.

Hanwha Group has been securing communication technologies that will be applied to flying air taxis. This month, it decided to invest 350 billion won in OneWeb, a U.K. company building a space internet service network.

In April, Hanwha raised funds through a paid-in capital increase of 1.2 trillion won to support aggressive investment by Hanwha System. Based on this, it announced a plan to invest in new businesses such as air mobility and satellite communication for three years. It is also pushing for the Urban Airport Project for air taxis.

The hydrogen business is also a new growth engine for Hanwha Group. The group aims to boost profitability by making investment in businesses that range from hydrogen production to hydrogen storage, transportation, and charging.

Hanwha Solution recently invested about 110 billion won to complete the acquisition of Cimarron, a U.S. high-pressure hydrogen tank company. Based on Cimarron's technology, it is planning to start the hydrogen tank business that will supply hydrogen tanks for hydrogen transport trailers and hydrogen charging stations in earnest. In the future, more hydrogen tanks will be used by air taxis or spaceships. The hydrogen tank business is expected to create synergies with Hanwha System's aerospace business.

Hanwha General Chemical is also speeding up its hydrogen-based power generation business by acquiring foreign technology companies one after another. In July, the company which completed the acquisition of PSM in the United States and Thomasen Energy in the Netherlands launched the first hydrogen to gas turbine (H2GT) power generation project in Korea that could significantly reduce carbon emissions. The two companies that Hanwha General Chemicals acquired have original technology to convert liquefied natural gas (LNG) gas turbines into hydrogen gas turbines.

H2GT power generation is considered an intermediate step toward a 100-percent hydrogen age. It produces electric power by mixing LNG with hydrogen. If hydrogen is mixed with LNG and the mixture is burned, it can reduce carbon emissions compared to current LNG-based power generation. If the project is successfully completed, it will be applied to LNG power plants in Korea.

Hanwha’s new and renewable energy business, which has been lopsidedly focused on solar energy, also took a turning point after acquiring a French company that has strengths in wind power generation. On Aug. 9, Hanwha Solution decided to acquire a 100 percent stake in RES Méditerranée SAS (RES France), a French renewable energy developer, for about 727 million euros. RES France’s sales in 2020 break down into 49 percent for the land wind power generation, 40 percent for offshore wind power generation and 11 percent for solar power generation. Therefore, the company is expected to enter new businesses in the renewable business sector by partnering with Hanwha Solution.