Loop Energy expands in south korea with second win to supply fuel cells for hydrogen electric bus platform.
Loop Energy™ (TSX: LPEN), announces that its value-added distributor in South Korea – NGVI Inc., has secured a supply contract for a hydrogen electric bus project with a second municipality in the country – this time with the county of Ulju.
This marks Loop Energy’s second design win in South Korea in less than one year. Loop Energy’s quick expansion in the South Korean market is a strong validation for its products in the bus sector, following its first design win recently in 2022. It is also a strong signal of the South Korean market growth potential and accelerated demand for fuel cell adoption.
The two-year government project, led by KAR Co. Ltd. – a quickly growing hydrogen electric bus manufacturer, will see the hydrogen electric bus put into operation in Ulju-gun, located within the hydrogen hub of Ulsan in South Korea. The pilot bus is expected to complete in 2024.
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With more design wins within the bus sector, Loop Energy is becoming a leading supplier in the hydrogen electric bus market, with the company anticipating demand to grow in near-term serviceable market opportunities across key markets of South Korea, Australia, and Europe.
Loop Energy and NGVI have a strong cooperating partnership to jointly pursue the South Korea market. The two companies first signed a memorandum of understanding in 2021 followed by a value-added distribution agreement in 2022, and then the first hydrogen electric bus fitted with Loop Energy fuel cells was launched in September 2022. The two companies are continuing to pursue other commercial opportunities in the country.
George Rubin, Loop Energy’s Chief Commercial Officer, said:
Korea is advancing its electrification for buses at an accelerated pace.
“As a fuel cell company, having early design wins in the selection process is critical to gaining entry in the market and a key step towards scalability. By working closely with our partner NGVI, we have demonstrated an effective partnership to securing more fuel cell supply contracts in South Korea.”
David Jung, Chief Executive Officer of NGVI, said:
Following the success of launching our first hydrogen-electric bus platform in 2022, we are quickly expanding to work with Loop Energy to create vehicle platforms for other uses in South Korea.
“By combining our local market knowledge and fuel systems expertise with Loop Energy’s plug-and-play fuel cell solutions, we are well positioned to capture the opportunities and meet the timelines of the many vehicle electrification projects that are coming online in Korea in the near future.”
South Korea has developed a roadmap to deploy 60,000 hydrogen-electric buses by 2040. The government is providing incentives for manufacturers to receive subsidies of up to 70% per battery-electric bus and up to 85% per hydrogen-electric bus, which will undoubtedly catalyze the production and transition timeline of zero-emissions buses, and accelerate the demand for hydrogen technology and fuel cell solutions.
Loop Energy Expands in South Korea with Second Win to Supply Fuel Cells for Hydrogen Electric Bus Platform, VANCOUVER, BRITISH COLUMBIA and SEOUL, KOREA, August 1, 2023
