Hanwha Solutions and SK D&D have inked a strategic partnership to push for hydrogen fuel cell and solar power energy businesses, the companies said Wednesday.

Representatives from the two sides signed a memorandum of understanding on Tuesday. According to officials, their joint hydrogen fuel cell business will aim to enter Korea’s bidding market for hydrogen power development.

Hanwha Solutions will be in charge of securing the site for setting up a hydrogen fuel cell plant and obtaining the government’s approval and licensing while SK D&D will take care of supplying fuel cells as well as operating and management of the plant.

The companies said that they will establish a 20-megawatt-class hydrogen fuel cell power plant in the country’s capital region without mentioning the specific location of the site. They plan to break ground for the fuel cell plant in the first quarter of 2025. Once the plant begins operation, it is expected to generate power for 47,000 households per year.

According to Hanwha Solutions, hydrogen fuel cell power generation can reduce about 110,000 metric tons of carbon dioxide emissions annually when compared to traditional fossil fuel power generation.

Hanwha Solutions and SK D&D said they will push for joint investments and co-development in other renewable energy businesses such as solar power generation.

“As the climate crisis has become a reality, the newly-established bidding market for fuel cell power generation has unlimited growth potential,” said a Hanwha Solutions official. “In cooperation with SK D&D, we will actively secure resources to achieve carbon neutrality such as solar power and fuel cells.”