J&K Heater intends to increase the share of its hydrogen business in order to reach its target of related sales of 60 billion won this year.
JNK Heater has had dismal performance over the previous five years. Their primary business is industrial heating furnaces, which are essential infrastructure for oil refineries and factories.
With the ability to extract hydrogen, JNK Heater operates a hydrogen charger and extractor business. A hydrogen extractor is a piece of equipment that is installed in landfills that extracts hydrogen from biogas or municipal gas.
According to the Financial Supervisory Service’s Electronic Disclosure System, J&K Heater’s hydrogen business had a seven-fold increase in sales from 2.5 billion won in 2019 to 17.3 billion won in 2021. Sales from the hydrogen industry totaled 15.7 billion won in the third quarter of 2022, or 19% of all sales.
JNK Heater’s sales in 2019 decreased by almost 40% from 242.7 billion won to 147.1 billion won in 2021 as sales of industrial heating furnaces collapsed. The third quarter of 2022 saw cumulative sales of 127.2 billion won, representing year-over-year gain, however this is simply a base effect. JNK Heater is reducing the share of industrial heating furnace sales and boosting the share of the hydrogen industry as the demand for green energy rises.
Hydrogen has become a significant energy source as a result of the US Inflation Reduction Act (IRA) and the European Union’s energy issue. Around the world, policies to increase hydrogen generation are growing. The production of hydrogen is subsidized by the European Union (EU), and China is also erecting substantial hydrogen infrastructure.
Korea is promoting a scheme to switch petrochemical plant fuel to hydrogen in important industries and increasing subsidies for hydrogen vehicles in order to increase the number of hydrogen buses and trucks. UAE has made the decision to invest nearly 37 trillion won in Korea’s hydrogen, defense, and nuclear power sectors. Despite the fact that no specific investment plan has yet been made public, it benefits the hydrogen industry.
Additionally renowned internationally for its technology is J&K Heater. It agreed to supply hydrogen extractors to the Saudi Arabian oil major Aramco in a contract signed last year. It has agreed to deliver hydrogen charging stations under a contract with an Indian oil business.
JNK Heater is also boosting its investment in new technologies for the hydrogen sector, such as the creation of a method for isolating hydrogen from ammonia and a system for supplying liquefied hydrogen.