Vahana Fuel Cell, a hydrogen fuel cell specialist, has secured a stable revenue base by signing a 6.4 billion won contract with the Defense Acquisition Program Administration to supply submarine fuel cell module spare parts.
Vahana Fuel Cell announced in a regulatory filing on the 20th that it had signed a contract with the Defense Acquisition Program Administration to supply submarine fuel cell modules (spare parts). The total contract value is approximately 6.4 billion won, equivalent to 14.85% of last year's revenue. The contract runs until July 21, 2028.
Under the contract, the company will supply spare parts for the fuel cell modules installed in three Jangbogo-III Batch-I submarines—the Dosan Ahn Chang-ho, the Ahn Mu, and the Shin Chae-ho. Vahana Fuel Cell first plans to deliver one module by July 21, 2028. The Navy will be able to operate its submarines more reliably, as it can use the spare parts to maintain modules on a rotating basis in the event of an emergency.
Until now, Vahana Fuel Cell's submarine fuel cell module revenue has mainly come from the initial delivery and maintenance stages. With this contract adding a spare parts delivery stage, the company has secured a more stable revenue cycle.
Through its subsidiary Vahana Materials, Vahana Fuel Cell is working to internalize core components such as the membrane electrode assembly (MEA) and the electrolyte membrane, which it had previously relied on imports for. Through this, the company aims to achieve 100% localization of submarine fuel cell modules, pursuing full technological independence, stable component procurement, and technological reliability.
Meanwhile, Vahana Fuel Cell has exclusively supplied fuel cell modules for next-generation Jangbogo-III class submarines since 2018. It recently completed the defense standardization and cataloging procedures for the "fuel cell module for the Jangbogo-II (KSS-II)," enabling the localization of fuel cell modules that had previously depended on imports. The fuel cell modules installed in a total of nine Jangbogo-II class submarines, including the Son Won-il, are set to be sequentially replaced with domestically produced products.
