Hyundai Motor Co.`s hydrogen fuel cell car `NEXO`
South Korea’s leading automaker Hyundai Motor Co., betting big on the hydrogen fuel cell electric vehicle as the next-generation eco-friendly car, is set to establish a special purpose company to build infrastructure for hydrogen fuel cell EVs.
A special committee formed in April for the establishment of the SPC led by Hyundai Motor and other 15 firms including Korea Gas Corp., Korea Expressway Corp., Hyosung Heavy Industries Corp. and SK Gas Ltd. said Wednesday that it is inviting additional firms to participate in the project by Oct. 2.
The companies aim to raise about 200 billion won ($178.5 million) through the SPC, tentatively named HyNet, and construct 100 hydrogen fuel cell charging stations and operate them by 2022. The committee plans to hold an inaugural meeting around early November and pay investment by the end-November to complete the establishment of the SPC around mid-December. The SPC would be launched next year and operated over the next 10 years.
Backed by Hyundai Motor’s industry-leading hydrogen fuel cell technology, the Korean government and related private businesses have teamed up to come up with 2.6 trillion won to invest in the hydrogen fuel cell EV market by 2022.
But due to the high upfront costs and a marginal share of hydrogen fuel cell EVs in the auto market, it has been difficult to attract investors to the SPC. The Korean government and participants hope that the launch of the SPC can contribute to spur demand for hydrogen fuel cell EVs.
By Kang Young-woon and Choi Mira
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]