Hanwha Solutions Accelerates Entry into US High-Pressure Tank Market with 300 Billion KRW Contract Win

by Hwang Yoonju

Published 25 Aug.2021 13:48(KST)

Hanwha Solutions Accelerates Entry into US High-Pressure Tank Market with 300 Billion KRW Contract Win

[Asia Economy Reporter Hwang Yoon-joo] Hanwha Solutions Advanced Materials Division is stepping up its global hydrogen tank business by actively targeting the U.S. high-pressure tank market for transportation through Hanwha Cimarron, which it acquired last year. This marks the first compressed natural gas (CNG) storage tank supply contract since Hanwha Cimarron joined the Hanwha Group. To support this, Hanwha plans to build a carbon fiber-based high-pressure tank production facility in Alabama, USA, by next year.

Hanwha Cimarron announced on the 25th that it has signed a contract to supply CNG tube trailers for transportation to the energy company Sunbridge, headquartered in Texas, USA, for the next 10 years. The total order amount is $260 million (approximately 300 billion KRW). A tube trailer is equipment that combines high-pressure tanks (tubes) and transportation trailers to store and transport hydrogen, CNG, and other gases.

The tube trailer to be supplied this time measures 2.5 meters wide and 14 meters long, containing 18 'Jupiter Tanks' produced by Hanwha Cimarron. Considering that each Jupiter Tank has a storage capacity of about 500 kg, one tube trailer can transport approximately 9 tons (t) of CNG at once. The Jupiter Tank is a Type 4 product made of composite materials such as carbon fiber and is characterized by its ability to withstand high pressure of 300 bar.

Along with this contract, Hanwha Solutions has decided to invest about $51 million (approximately 60 billion KRW) initially to build a high-pressure tank production facility in Opelika, Alabama. Once the factory is completed in the second half of next year, it will be able to produce about 4,000 high-pressure tanks annually. Additionally, Hanwha plans to make further investments by 2025 to enter the storage tank markets for hydrogen-based electric vehicles, UAM (Urban Air Mobility), and space rockets.

Ryu Doo-hyung, CEO of Hanwha Solutions, said, "We are considering establishing a high-pressure tank R&D center following the supply of CNG tanks in North America," adding, "We will actively enter the rapidly growing hydrogen storage and transportation market in the future."

Meanwhile, Sunbridge, which signed the contract with Hanwha Cimarron, is a newly established energy company founded in Texas, USA, in 2019. Its main business model is supplying CNG and other fuels for drilling equipment via tube trailers instead of pipelines to shale gas companies located in the Permian Basin, the largest oil field area in Texas.