Hyundai Motor agrees with Chinese institute to set up hydrogen fund

Lim Chang-won Reporter Posted : 2018-10-29 13:01 Updated : 2018-10-29 13:01
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[Aju News DB]

SEOUL -- Hyundai Motor, a frontrunner in the development of hydrogen fuel cell electric vehicles, agreed with a Chinese research institute to set up a $100 million hydrogen fund for investment in startups in South Korea and China.

Hyundai Motor said Monday that a memorandum of understanding on the Hydrogen Energy Fund was signed in Beijing with Tsinghua University, a top Chinese school known for research in engineering and computer science, and the Beijing-Tsinghua Industrial R & D Institute.

Hyundai and the institute's investment arm, Yield Capital, will jointly manage the fund and draw venture capitals from Asia, Europe and the United States. The fund would invest in start-ups with core technology related to hydrogen fuel and infrastructure.

Beyond simple equity investment, Hyundai and its Chinese partners will provide systematic support for start-up incubation and develop hydrogen-related technologies in both countries.

Hyundai said the tie-up would promote its participation in China's state project to establish infrastructure for hydrogen energy. China plans to put one million hydrogen fuel cell electric vehiclesFCEVs on the road by 2030 and build some 1,000 hydrogen charge stations by 2030.

Hydrogen fuel cells produce heat, electricity and water through a thermochemical reaction between hydrogen and oxygen. Because of its eco-friendly characteristics, fuel cells are seen as a renewable power source.