SK ecoplant partners with Ireland's Lumcloon Energy to supply renewable energy in Ireland
Simon Coveney, Irish Minister for Enterprise, Trade, and Employment: "Europe's first SOFC-based data center will be a great model for future data centers combining the latest technology and eco-friendly solutions"
Exploring additional business opportunities in Ireland, including hydrogen, solar power, and ESS
Bloom Energy SOFC supplied to over 700 sites worldwide, exceeding 1GW ··· Holds the largest global market share in stationary fuel cells
SK ecoplant is advancing plans to supply solid oxide fuel cells (SOFC) to a new data center built in Ireland, a hub for global big tech companies.
On the 2nd, SK ecoplant announced signing a memorandum of understanding (MOU) with Ireland's Lumcloon Energy at its headquarters in Susong-dong, Jongno-gu, Seoul. The MOU covers cooperation between the two companies for the supply of fuel cells to a new data center and renewable energy collaboration, including solar power, hydrogen, and energy storage systems (ESS).
The signing ceremony, attended by Simon Coveney, Irish Minister for Enterprise, Trade, and Employment, featured Park Kyung-il, President of SK ecoplant, Lee Wang-jae, Head of SK ecoplant's Eco Energy BU, Nigel Reams, CEO of Lumcloon Energy, and other officials from both companies. Leo Clancy, CEO of Enterprise Ireland, and other significant figures from the Irish government and industry were also present, adding to the event's significance.
Under this agreement, SK ecoplant will collaborate with Lumcloon Energy, a specialist developer in power generation and renewable energy projects in Ireland, to introduce fuel cells as a power source for a data center established in Castlelost, approximately 80 km west of Dublin.
Simon Coveney, Irish Minister for Enterprise, Trade, and Employment, stated, "If this collaboration leads to constructing a data center in Ireland powered by fuel cells, it will be the first of its kind in Europe. This innovative power supply system for data centers will significantly reduce carbon emissions and meet high power demand strategically."
He added, "The first fuel cell-based data center in Europe, driven by the combined efforts of Korea's SK ecoplant and Ireland's Lumcloon Energy, is expected to become a great model for future data centers integrating the latest technology and eco-friendly solutions."
Ireland is recognized as a data center hub due to its favorable natural conditions, such as low electricity costs and cool weather, which enhance cooling efficiency. Government support through low corporate taxes also bolsters this status. Dublin hosts data centers for global big tech companies like Google, Amazon, and Meta, along with over 60 other data centers.
However, the enormous power demand of data centers has sometimes hindered attracting new data center investments. Data centers must operate efficiently and continuously, 24/7, storing and distributing vast amounts of information in real-time. Ensuring a stable and efficient power supply system is crucial, given the high power consumption required to maintain the operation of servers, storage, and controlled internal temperature and humidity.
According to Ireland's state-owned electric power company, Eirgrid, about 18% of Ireland's total electricity generation was used by data centers as of 2022. Eirgrid predicts that by 2028, the power consumption by data centers will rise to 30% of the country's total electricity production. Amid the Irish government's plan to halve carbon emissions by 2030, fuel cells are considered an excellent alternative to fossil fuels, ensuring a stable power supply for data centers.
Fuel cells are a representative high-efficiency urban distributed power source that can generate electricity even on limited sites. Bloom Energy's SOFCs, in particular, are third-generation fuel cells with the highest generation efficiency among existing types. Bloom Energy SOFCs have been supplied to over 700 locations worldwide, exceeding 1GW. According to a report by global consulting firm Frost & Sullivan in June, Bloom Energy holds a 44% global market share in stationary fuel cells, making it the world leader. Since 2018, SK ecoplant has maintained a strategic partnership with Bloom Energy, working together to localize and distribute Korea's world's highest-efficiency SOFCs.
SK ecoplant plans to lead the project as a key player beyond simple construction, including business development, equity investment, financing, and fuel cell EPC (engineering, procurement, and construction). This partnership with Ireland will serve as a bridgehead for expanding into the rapidly growing European data center power supply system and renewable energy markets.
SK ecoplant has a comprehensive value chain covering renewable energy such as solar and offshore wind power and green hydrogen and fuel cell businesses. Collaboration in additional projects is anticipated in Ireland, which aims to supply 80% of its total electricity from renewable energy sources by 2030.
Leo Clancy, CEO of Enterprise Ireland, attended the signing ceremony and stated, "Korea is becoming an increasingly important market for Irish companies. Today's cooperation agreement between the two companies demonstrates the successful collaboration of innovative enterprises from both countries."
Park Kyung-il, President of SK ecoplant, commented, "This collaboration will establish a foundation for providing eco-friendly energy solutions, including the fuel cell business, in Ireland. We will solidify our position as a global energy company with a complete value chain from renewable energy to hydrogen in advanced markets."
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