DS AETHER CT

Wee Ho Sun DUKSAN AETHER CT CEO poses for a photo after an interview with H2 News at the Busan headquarters.

These days, if you drive on the highway, you will often see tube trailer vehicles equipped with orange hydrogen storage tubes. This is because the amount of hydrogen transported from hydrogen production sites to hydrogen vehicle charging stations is increasing.

According to the Ministry of Trade, Industry and Energy, the demand for hydrogen for mobility last year was 9,499 tons, up about 64% from the same period the previous year (5,791 tons). While the spread of hydrogen cars has been slower than the government’s target, it is expected to accelerate starting this year, leading to a significant increase in hydrogen demand.

In fact, it is expected that when 2,000 hydrogen buses and 11,000 hydrogen passenger cars are newly supplied this year, the total will reach approximately 23,000 tons. Currently, Type 1 hydrogen tube trailers, which are steel pressure vessels, are mainly used, but as large-capacity hydrogen charging stations increase, the demand for Type 4 hydrogen tube trailers, which are composite material vessels, is also expected to increase. DUKSAN AETHER CT, the No. 1 domestic Type 1 hydrogen tube trailer company, is also developing Type 4 hydrogen tube trailers and vehicle hydrogen containers to enter the Type 4 market in earnest.

High pressure tube company owned by DUKSAN Group

DUKSAN AETHER CT is a Jumbo pressure vessel manufacturing company established in May 2020 through a spin-off of the large-pressure vessel division from Busan's NK Group. At the time of establishment, the company's name was 'NK Aether', but in June 2022, the company changed its name to 'AETHER CT' to establish a clear identity for its vessel manufacturing technology. In December 2023, DUKSAN Hi-Metal of DUKSAN Group acquired a 91.88% stake in AETHER CT held by private equity fund Ascent PE, and was reborn as 'DUKSAN AETHER CT'.

Although it is a new company that has been established for less than 5 years, it has over 30 years of experience in producing jumbo pressure vessels. The product line is divided into special gas pressure vessels and hydrogen pressure vessels required for various industries such as semiconductors, displays, and secondary batteries. Representative products for special gases include IMDG tube skids and Y toners.

For hydrogen, the main products are tube trailers for transportation and ASME storage containers for hydrogen charging stations. It is safe to say that all of the transportation tube trailers (Type 1) currently in operation nationwide are products of this company. Recently, they have also been producing various composite material containers for hydrogen mobility (Type 4).

High pressure vessel produced at Busan factory. (Photo = DUKSAN AETHER CT)

“The competitiveness of DUKSAN AETHER CT lies in its quality and technology recognized in the global market, as well as its continuous investment in research and development. After acquiring AETHER CT, we replaced most of the aging core equipment in the factory and strengthened quality standards such as resistance and impurity removal. In particular, we are proud that we are the best in internal treatment compared to leading global companies. In the end, it comes down to quality. We are also confident that our lead time (the process of delivering a manufactured product to the customer’s hands) is much faster than that of our competitors. We have created a dedicated A/S team and are paying a lot of attention to after-sales service.”

This is the competitiveness of the company revealed by Wee Ho Sun DUKSAN AETHER CT CEO.

DUKSAN AETHER CT was selected as a world-class product certification company in 2020, and in 2021, it won the $30 million export tower at the ‘58th Trade Day’. Since 2000, it has successfully completed 18 government and local government projects, and has acquired 6 overseas patents and 20 domestic patents. It has established a research center in Buan, Jeollabuk-do and hired many master’s and doctoral researchers, and has strengthened its research and development by investing about 20 billion won in 18 government and local government projects.

We have also obtained international certifications such as ASME, DOT, SELO, and TPED, enabling us to comply with global standards and provide customized solutions to various countries and companies. This is based on the experience and knowledge accumulated through collaboration with domestic customers who demand world-class products and the Korea Gas Safety Corporation (KGS).

CEO Wee Ho Sun(center) and executives are having a meeting.

On December 28, 2021, a fire broke out in a hydrogen tube trailer (manufactured and supplied by DUKSAN AETHER CT) running on the Daejeon-Dangjin Expressway.

It was confirmed that the vehicle accident was not caused by hydrogen but rather a tire fire due to a malfunction in the vehicle's brake system. The fire caused the internal pressure of some hydrogen tanks (2 out of 10) to rise, causing the hydrogen to be forcibly released by the tank safety device (rupture plate) and catch fire, forming two pillars of fire, but it was extinguished in about 30 minutes without any casualties.

According to the Korea Gas Safety Corporation and experts, this forced hydrogen release could have prevented a larger accident such as a chain explosion of tanks.

The representative said, “This accident was evaluated as an exemplary case of properly designing the container safety device to operate, and it served as an opportunity to improve the market’s perception of the hydrogen tube trailers we manufacture.” He added, “However, as a result of the accident investigation by the Korea Gas Safety Corporation and expert advice, some improvements were suggested, such as the direction of the hydrogen discharge port and strengthening the heat insulation of the hydrogen tank, and we are manufacturing and supplying hydrogen tube trailers in compliance with these.”

The representative added, “DUKSAN AETHER CT is thoroughly complying with domestic and international certification standards with the safety of high-pressure gas cylinders as its top priority, and is actively carrying out internal improvement activities to establish a continuous safety management system with the goal of creating a clean and safe luxury product production site.”

Reborn as a hydrogen specialist company

“We were selected as a hydrogen specialist company by the Ministry of Trade, Industry and Energy in 2022. We have been supplying products stably to the domestic and international hydrogen markets. Overseas, we plan to introduce our products to various industries, such as by utilizing strategies to discover new business opportunities in the energy solution field.”

The representative estimates the domestic market for gaseous hydrogen transport tube trailers and ASME containers for storage to be worth about 30 billion won. The market for Type 4 containers for mobility is estimated to be worth about 100 billion won. As the production of blue hydrogen and green hydrogen continues to increase, the demand for large containers for transporting and storing them is expected to continue to increase.

The representative said, “The global hydrogen high-pressure container market has been growing more slowly than expected due to the delays in large-scale projects, but it is estimated to be worth hundreds of billions of won,” and “It is expected to show an average annual growth rate of 7% until 2030.”

Hydrogen tanks of DUKSAN AETHER CT installed at a hydrogen charging station under construction. (Photo = DUKSAN AETHER CT)

As the construction of gaseous hydrogen charging stations and hydrogen production bases is increasing in accordance with the government’s ‘Hydrogen Economy Activation Roadmap’, DUKSAN AETHER CT is overwhelmingly taking the first place in the market for 200 bar type 1 tube trailers. The medium and high pressure storage containers for hydrogen charging stations, which were 100% dependent on imports, have also been completed for domestic production and are increasing their market share every year. Recently, DUKSAN AETHER CT’s storage containers were presented as a standard for a new narrow-area commercial vehicle charging station model that does not require a tube trailer spur.

In overseas cases, the hydrogen tube trailer recently supplied to an Australian energy EPC company is expected to activate the hydrogen economy in Australia, starting with Queensland, and become the starting point for promoting the use of hydrogen fuel for commercial vehicles and large vehicles. We also plan to participate in a project to build an integrated system that includes the entire value chain, including electrolyzer manufacturing, hydrogen supply, transportation, and distribution, at a hydrogen production base in the western United States and supply products.

It is expected that China's hydrogen tube trailer will move from Type 1 to Type 2 (steel container). In fact, China's first 300-bar Type 2 tube trailer was manufactured and supplied to Linde. When the Type 2 market opens in China, we plan to fully launch Type 2 tube trailer sales through our Chinese branch in Shanghai.

Entering the Type 4 Hydrogen Tank Market

DUKSAN AETHER CT presented its vision for the hydrogen mobility and transportation/storage market by unveiling Type 4 containers at the H2 MEET exhibition last year. The 9.5L container for drones and the 40L container for passenger cars completed certification and commercialization in 2024. The 179L product for commercial vehicles is also on the verge of commercialization.

Hydrogen tank for Type 4 vehicle from DUKSAN AETHER CT(Photo = DUKSAN AETHER CT)

The representative explained, “We are currently applying our products to the production of prototypes under a development service contract with a foreign automobile company,” and “We are preparing supply contracts with domestic bus companies for the 179L product for commercial vehicles that has obtained KGS certification and ECE R134 international certification. This product will be used not only in buses but also in trucks, trams, etc.” In particular, China, which is actively promoting the spread of hydrogen cars with its hydrogen boom policy, currently mainly applies Type 3 (composite cylinder) hydrogen containers for vehicles, but is also attempting to introduce Type 4, and we plan to explore entering the Chinese market for Type 4 hydrogen containers for vehicles.

This is a Type 4 hydrogen tube trailer currently under development by DUKSAN AETHER CT, with a maximum hydrogen transport capacity of 1,100 kg per trip. (Image = DUKSAN AETHER CT)

In addition, the company plans to develop a Type 4 hydrogen tube trailer that can maximize hydrogen transportation efficiency through weight reduction by the end of this year and conduct a demonstration project in 2026. In order to enter the Type 4 container market, it acquired and merged with S-Advanced Materials, which has promising technology for manufacturing Type 4 containers, in January 2023.

The representative explained, “Since the Type 4 hydrogen tube trailer can transport up to 1,100 kg of hydrogen at a time, we expect it to play a big role in hydrogen charging stations for commercial vehicles that require large-capacity hydrogen supply.” He added, “By reducing the size from 40 feet (maximum 1,100 kg) to 20 feet, it will be able to transport more than 500 kg of hydrogen, which is more than the existing 200 bar Type 1 tube trailer (300 kg), so it can be applied to hydrogen charging stations in urban areas with complex traffic and limited space.”

The development of maritime green hydrogen transportation technology is also being promoted as a future business. DUKSAN AETHER CT, which was selected for the ‘K-Carbon Flagship Technology Development Project’ implemented by the Ministry of Trade, Industry and Energy, is leading the ‘Development of Hydrogen Storage Platform Technology for Maritime P2G (Power to Gas) Green Hydrogen Land and Sea Transportation’ project.

The representative said, “We are developing an innovative hydrogen storage solution that can safely and efficiently transport and store green hydrogen produced from offshore wind power generation on land by fusing carbon composite technology for the first time in Korea. We expect that this will enable us to secure international technological competitiveness,” adding, “We plan to complete product development and overseas certification by 2028 and pursue commercialization.”

The strategy is to actively target this market, as many green hydrogen production projects using offshore wind power are being planned overseas, especially in Europe.

Strengthening competitiveness through completion of Wanju plant

DUKSAN AETHER CT completed the largest ultra-large high-pressure vessel re-inspection facility in Asia and the Type 4 tube trailer assembly plant (Wanju Plant) in the 2nd industrial complex of Wanju Techno Valley in Jeonbuk Province, and held a completion ceremony on March 27.

The re-inspection facility is equipped with the latest automated equipment and can re-inspect up to 40 tube trailers per month, and is the only comprehensive re-inspection facility in Korea that can process not only containers but also trailer chassis and tube skids.

In addition to legal re-inspection (KGS, DOT, IMDG ADR, TPED, etc.), we provide one-stop service including internal/external short, eco-friendly automatic powder coating, ultra-high purity internal polishing (3S or less), and moisture removal process. Since batch processing is possible without outsourcing process, we can shorten the inspection period and provide quality consistency. In the future, when the law is completed, we plan to conduct re-inspection of Type 4 tube trailers.

CEO Wee Ho Sun is giving a speech at the completion ceremony of the Wanju plant on March 27. (Photo = DUKSAN AETHER CT)

Following the completion of the first stage of re-inspection and type 4 tube trailer assembly facility at the Wanju plant, the second stage is to build a type 4 composite container production facility, which is currently in the design stage. In addition to process automation, constant temperature and humidity facilities for consistent quality, and module assembly are also being considered. The existing type 1 products are produced at the Busan plant.

The representative said, “The Wanju plant facility is not just a simple maintenance facility; it aims to provide a standard for re-inspection to domestic and international customers,” adding, “We expect this to be an opportunity to further strengthen the competitiveness of DUKSAN AETHER CT, which prioritizes quality and safety.”

The goal of overwhelming world number one

“DUKSAN AETHER CT is focusing on technological innovation and market expansion with the goal of becoming a ‘global leader in hydrogen storage and transportation.’ In addition to existing high-pressure steel pressure vessels, we plan to expand the Type 4 composite material vessel market that is lightweight and highly durable, and establish ourselves as a key supplier in the hydrogen mobility and renewable energy industries. Through the ‘K-Carbon Flagship Technology Development Project,’ we aim to grow into a company that leads the next-generation energy solution.

We are also laying the foundation for sustainable growth by introducing smart manufacturing processes to improve production efficiency, establishing an automated quality inspection system, and expanding eco-friendly processes. As a company responsible for the core infrastructure of the hydrogen economy, we will continue to develop technology and invest in infrastructure.”

CEO Wee Ho Sun(center) is cheering on executive directors Hwang Suk-Joo (head of sales division, far left) and Heo Seok-bong (head of advanced materials division, far right).

This is the company’s future vision and growth strategy as stated by the CEO. In short, the goal is to become the ‘overwhelming global No. 1 high-pressure vessel company.’

He also conveyed my wishes to the government, “Currently, there is a need to expand hydrogen storage and transportation infrastructure, so it is important for the government to strengthen support for the development of hydrogen storage and transportation technology as well as the construction of hydrogen charging stations and storage facilities, and to maintain long-term policy consistency. In particular, it is necessary to support companies to enter the global market more smoothly by simplifying and standardizing domestic and international certification procedures,” adding, “This will allow for the rapid establishment of the hydrogen economy and the preemptive domination of the global market.”

*Source: https://www.h2news.kr/news/articleView.html?idxno=13336

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