This Commercial Due Diligence (CDD) project focused on evaluating the global growth potential of the hydrogen energy sector and the target company’s competitive advantages, ultimately defining strategies for market expansion. We analyzed the hydrogen production and supply ecosystem, infrastructure development status, and the target’s differentiated strengths relative to key competitors. The outcome includes actionable recommendations to secure strategic advantages in the global hydrogen economy.

1. Growth Potential in the Hydrogen Energy Market

Hydrogen energy plays a pivotal role in meeting emissions reduction targets (NDCs) across power, transportation, and industrial sectors. Backed by robust government support and existing infrastructure, Korea is rapidly advancing its hydrogen economy.

• Power Generation: By 2030, hydrogen co-firing and fuel cell power generation will be key growth drivers. Fuel cell plant capacity is projected to rise from 5.3 TWh in 2022 to 16 TWh by 2030, supported by the introduction of co-firing turbine technology.
• Transportation: Korea’s government is expanding the adoption of fuel cell electric vehicles (FCEVs), particularly for commercial fleets, aiming to deploy 30,000 such vehicles by 2030. Parallel development of hydrogen refueling stations (HRS) underpins this strategy.
• Industrial Use: The steel and chemical sectors are increasing their focus on green hydrogen. POSCO’s hydrogen-based ironmaking initiatives are expected to create demand for approximately four million tons of green hydrogen by 2030.

2. Target Company Competitive Assessment

The target company operates a core business in liquefied hydrogen production and supply, securing a leading position in Korea’s hydrogen economy.

• Infrastructure Strength: By leveraging the existing city gas network, the company efficiently transports and supplies hydrogen. Upcoming liquefied hydrogen plants ensure a stable supply base.
• Market Share Leadership: The company dominates liquefied hydrogen refueling infrastructure, capturing the majority of government subsidies for new stations. Ongoing construction plans further solidify its market presence.
• Cost Competitiveness: With lower per-unit production costs (KRW/ton) relative to competitors and scalable facilities, the company reinforces its cost advantage. Early adoption of LNG-based blue hydrogen lowers initial market entry barriers.

3. Global Expansion Strategies

The project identified key strategies for the company’s international growth:

• Ecosystem Expansion: Leveraging its successful domestic model, the company aims to expand into APAC and the Middle East, tailoring regional strategies around hydrogen fuel supply and transport infrastructure.
• Technological Partnerships: Collaborations with global OEMs and research institutions will accelerate both technology development and market penetration, including hydrogen co-firing turbines and large-scale fuel cells.
• Customer Diversification: By offering customized services and pricing to meet both public and private sector demand, the company can broaden its customer base and revenue streams.

Project Outcomes and Expected Impact

This CDD initiative provided strategic direction to strengthen the company’s differentiated competitiveness and foster sustainable growth in the hydrogen sector. Capitalizing on its technological edge and market dominance, the target company is well-positioned to solidify its leadership in the global hydrogen economy.