A hydrogen fuel cell supply deal worth 400 billion won ($273m) involving Doosan Fuel Cell has been cancelled, according to local reports in South Korea.
Doosan reportedly agreed to terminate its 110MW fuel cell system supply contract signed with Korea Hydro & Nuclear Power Engineering, Kumho Technology and LS Electric, due to prolonged delays in receiving the notice to proceed.
However, the South Korean firm said there would be no financial impact on the company as the contract did not involve any advance payments or deposits and had not been reflected in their order backlog or financial statements.
The company extended the disclosure deferral period until the end of March after the project had not progressed since 2022. Although, since the contract was terminated before the issuance of the commencement order, no advance payments were made.
“As time passed after the contract, there were industry changes such as the emergence of the Clean Hydrogen Power Generation Obligation System (CHPS) bidding market, which influenced this decision,” A Doosan official reportedly said.
This week has seen a decline in Doosan’s stocks, which closed at $10.15 on April 1, down 1.15% on the day and roughly 34.5% lower year-on-year, hovering just above its 52-week low of $10.40.
Last January, the South Korean Government cancelled plans for a 100MW hydrogen fuel cell power plant project, set to be led by Korea Midland Power (KOMIPO) and Doosan Enerbility.
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