Fraunhofer Institutes and SGC Energy Plan to Collaborate to Develop Eco-friendly Technologies

In August 2026, The Fraunhofer Institute for Environmental, Safety and Energy Technology UMSICHT, the Fraunhofer Institute for Applied Polymer Research IAP and the South Korean energy company SGC Energy revealed their plans to jointly develop CO2 electrolysis and hydrogen manufacturing technologies. They also intend to work on various battery and fuel cell chemistries.

This partnership plans to emphasize the advancement and expansion of electrochemical technologies for industrial operations. SGC Energy plays an important role in this joint venture as it is a prominent player in the energy and carbon capture sector of South Korea. The company intends to use already existing CO2 capture plants and its extensive infrastructure to develop an electrolysis platform for the manufacture of sustainable fuels and routine chemicals.

SGC Energy can use its existing infrastructure and prowess to assess new techniques in their early phases for their practicality and economic feasibility. Fraunhofer UMSICHT brings its significant experience in CO2 electrolysis, stack, and electrochemical technologies. Fraunhofer IAP will contribute its expertise in high-performance polymeric energy technologies and their expansion to the scale of production.

According to Prof. Dr.-Ing. Christian Doetsch, institute director of Fraunhofer UMSICHT, SGC Energy bolsters the joint venture as it brings relevant engineering prowess and the infrastructure for the advancement of CO2 capture technologies. It will be helpful for the transformation of CO2 electrolysis from research stages to the commercial production stage.

Impact on the Chemical Industry

According to Precedence Research, the collaboration between the Fraunhofer Institutes and SGC Energy is expected to positively impact the chemical industry. This joint venture plans to advance CO2 capture and next-generation battery technologies. CO2 capture technologies hold significant importance in today’s era as governments have imposed stringent regulations regarding emissions. Manufacturers who violate these laws will face harsh monetary penalties and license suspensions and cancellations. They need efficient methods to decrease their greenhouse gas emissions to ensure regulatory compliance. 

The rapid growth of the electric automobile industry has propelled the research and development of powerful, efficient, and resilient battery chemistries. Hydrogen is also being looked at as a cleaner alternative to fossil fuels. This joint venture brings together engineering and infrastructure expertise to advance next-generation critical technologies. 

Impact on the Green Technology and Sustainability Market

The global green technology and sustainability market size accounted for USD 28.87 billion in 2025 and is expected to exceed around USD 215.47 billion by 2035, growing at a CAGR of 22.26% from 2026 to 2035.

According to Precedence Research, the joint venture between Fraunhofer Institutes and SGC Energy is expected to benefit the green technology and sustainability market. There is a significant impetus among research organizations in recent times to develop sustainable and eco-friendly technologies. The awareness about the harmful effects of agricultural chemicals and emissions from various industries has increased, leading to emphasis on the development of green technologies. This partnership intends to work on decreasing the emissions of greenhouse gases and the development of next-generation propulsion technologies.

Impact on the Hydrogen Generation Market

The global hydrogen generation market size is calculated at USD 163.5 billion in 2025 and is predicted to increase from USD 172.5 billion in 2026 to approximately USD 285.3 billion by 2035, poised to grow at a noteworthy compound annual growth rate (CAGR) of 5.73% from 2026 to 2035.

According to Precedence Research, the collaboration between the Fraunhofer Institutes and SGC Energy is expected to positively impact the hydrogen generation market. Hydrogen is being used in various industries as it enables processing and manufacturing companies to decrease their environmental impact.

It is extensively used in petroleum refineries in hydrocracking and desulfurization processes to produce cleaner fuels and adhere to strict environmental laws. Hydrogen is also being rapidly adopted in gas turbines, fuel cells, and energy storage systems to control carbon emissions. It is also being looked at as a cleaner alternative to fossil fuels besides electricity in automobiles.

About SGC Energy

SGC Energy is an environmentally friendly energy company that manufactures steam and electricity. The company was established in 2001 and has its headquarters in South Korea. SGC Energy has a presence in various segments, which include heat, power, steam, and electricity generation and distribution. The company has a goal to diversify its portfolio and increase its presence across the world. The SGC Group consists of various companies such as SGC E&C, SGC Solutions, SGC Green Power, SGC Development, and SGC Partners. The company has been manufacturing high-quality steam for anghang in Chungcheongnam-do and the Gunsan Industrial Complex since 2008. SGC Energy has also placed significant emphasis on the adoption of renewable energy. They are increasingly using solar energy and biomass to generate electricity.