Samsung’s 2025 Green Hydrogen Strategy: From Global Partnerships to Market-Ready Solutions

Industry Adoption: How Samsung is Building a Commercial Green Hydrogen Ecosystem

Samsung’s foray into green hydrogen has evolved from a phase of strategic exploration to aggressive commercialization. Between 2021 and 2024, the company, primarily through its engineering and construction arms, focused on building a foundational ecosystem through partnerships and initial project development. This period was characterized by forming alliances across the value chain, such as collaborating with POSCO and Saudi Arabia’s Public Investment Fund (PIF) for a green hydrogen production project (January 2022) and with S-Oil for ammonia transport (September 2021). The investment in renewable fuels producer Raven SR (March 2022) and a partnership with electrolyzer firm Verdagy (March 2024) signaled an intent to secure technology access and market position. This phase culminated in Samsung Engineering initiating the Front-End Engineering Design (FEED) for a 150,000-tonne-per-annum green hydrogen plant in Asia (November 2023), demonstrating its capability in large-scale project design.

The period from 2025 to today marks a significant inflection point, shifting from planning to productization. The cornerstone of this pivot was SAMSUNG E&A’s $33 million investment for a 9.1% stake in Norwegian electrolyzer specialist Nel ASA in March 2025. This move went beyond a simple partnership, providing Samsung with deep access to critical production technology. This was immediately validated by the launch of ‘CompassH2’, a standardized green hydrogen plant solution based on Nel’s alkaline technology (May 2025), followed by a 100 MW PEM-based model, ‘CompassH2-P’ (November 2025). This rapid product development showcases a strategy to become a turnkey solutions provider. The new opportunity is clear: Samsung is no longer just an EPC contractor but a technology integrator selling standardized, scalable hydrogen production plants. The primary threat is the speed of technological evolution; as Samsung standardizes around Nel’s technology, it must keep pace with a rapidly innovating electrolyzer market to avoid being locked into a less competitive solution.

Table: Samsung’s Strategic Investments in the Hydrogen Economy

Table: Samsung’s Key Green Hydrogen Partnerships

Geography: Samsung’s Global Hydrogen Footprint

Samsung’s geographic strategy for hydrogen has broadened from targeting production hubs to securing technology leadership and entering key end-markets. Between 2021 and 2024, activities were concentrated in regions with high potential for large-scale, low-cost hydrogen production. The partnership with POSCO and the PIF in January 2022 placed Samsung directly in Saudi Arabia, a cornerstone of future global green fuel supply. Concurrently, investments in companies like Raven SR and project design work in Asia showed a focus on the broader Asia-Pacific region, both for production and technology application. This tells us the initial strategy was to establish a presence in future export-oriented production centers.

From 2025 onwards, the geographic focus has diversified. The strategic investment in Nel ASA (March 2025) targeted a Norwegian technology leader, indicating a shift to secure European technical expertise. Subsequently, the application of this technology is manifesting in North America, with SAMSUNG E&A securing an engineering contract for DG Fuels’ sustainable aviation fuel (SAF) plant in the United States (November 2025). This pivot shows a more mature strategy: acquire best-in-class technology from Europe and deploy it as a commercial service in the U.S., a market with strong policy incentives like the Inflation Reduction Act. The emerging risk is no longer just being present in production zones but navigating the complex policy and competitive landscapes of both European technology centers and North American end-markets simultaneously.

Technology Maturity: Samsung’s Path from Blueprint to Product

The data reveals a clear progression in the maturity of Samsung’s hydrogen strategy, moving from conceptual planning to the launch of commercial-grade products. In the 2021–2024 period, the focus was on pre-commercial activities and capability building. This is evidenced by the formation of partnerships to explore opportunities (Baker Hughes, June 2021), develop future projects (POSCO/PIF, January 2022), and gain exposure to different electrolyzer technologies (Verdagy, March 2024). The most advanced signal from this era was the initiation of a FEED study for a large-scale Asian plant in late 2023, representing a move from Memorandums of Understanding to detailed engineering, but still short of a final investment decision or construction. This period was about assembling the pieces and validating the business case.

The years 2025 to the present represent a decisive shift to commercialization and market entry. The investment in Nel ASA (March 2025) was a critical validation point, moving from a partner to a stakeholder and securing deep technological access. This immediately translated into the launch of ‘CompassH2’ and ‘CompassH2-P’—standardized, productized plant models ready for market deployment. This is no longer a demonstration-phase activity; it is a commercial offering. The contract to engineer hydrogen systems for the DG Fuels SAF plant (November 2025) further validates this maturity, as Samsung is now being hired for its specialized engineering services on a large-scale commercial project. This trend signifies that Samsung’s hydrogen business has transitioned from a strategic initiative in a pilot phase to a commercial-ready division with tangible products and services.

Table: SWOT Analysis of Samsung’s Green Hydrogen Strategy

Forward-Looking Insights and Summary

The most recent data from 2025 signals that Samsung is no longer just preparing for the hydrogen economy; it is actively building it. The launch of the ‘CompassH2’ product line is the most critical signal for the year ahead. Market actors should now shift their focus from tracking Samsung’s partnerships to monitoring the commercial traction of these standardized solutions. The key question for the next 12-18 months is: when will Samsung announce the first full sale and deployment of a ‘CompassH2’ plant? The DG Fuels engineering contract is a positive indicator of market trust, but a full turnkey project will be the ultimate validation of its product strategy.

What’s gaining traction is Samsung’s role as a technology integrator, moving beyond its traditional EPC identity. What may lose steam is the previous strategy of forming broad, non-exclusive partnerships in favor of deepening ties with core technology providers like Nel. The signal to watch is how Samsung leverages this relationship—will it lead to co-development of next-generation electrolyzers or exclusive supply agreements that give it a competitive edge? For investors and competitors, Samsung’s hydrogen strategy is now a tangible threat and opportunity, defined not by ambition but by a product catalog and a clear go-to-market plan.

Frequently Asked Questions

What was the major shift in Samsung’s green hydrogen strategy in 2025?
In 2025, Samsung shifted from being an EPC contractor and strategic partner to becoming a turnkey solutions provider. This pivot was marked by a strategic investment in electrolyzer firm Nel ASA and the immediate launch of ‘CompassH2,’ a standardized, productized green hydrogen plant solution, signaling a move from project planning to aggressive commercialization.

What is the ‘CompassH2’ product line?
‘CompassH2’ is a standardized, scalable green hydrogen plant solution developed by Samsung. The initial model is based on Nel ASA’s alkaline electrolyzer technology, with a subsequent PEM-based model named ‘CompassH2-P’. It represents Samsung’s transition from offering custom engineering services to selling ready-to-deploy, commercial-grade production plants.

Who are Samsung’s most important partners in its current hydrogen strategy?
While Samsung has multiple partners, its most critical partner since 2025 is Norwegian electrolyzer specialist Nel ASA. Samsung acquired a 9.1% stake in Nel to secure deep access to its technology. Other key partners include Verdagy for alternative electrolyzer options, DG Fuels for sustainable aviation fuel (SAF) projects, and foundational partners like POSCO and Saudi Arabia’s PIF for project development.

What is the biggest risk associated with Samsung’s new hydrogen strategy?
The primary risk is technological dependency and the rapid pace of innovation. By standardizing its ‘CompassH2’ solutions around Nel ASA’s electrolyzer technology, Samsung risks being locked into a specific technological path. If competitors develop more advanced or cost-effective electrolyzer technologies, Samsung’s standardized offerings could become less competitive.

How has Samsung’s geographic focus for its hydrogen business evolved?
Initially (2021-2024), Samsung focused on establishing a presence in future large-scale production hubs, particularly in Saudi Arabia and the broader Asia-Pacific region. From 2025, its strategy diversified to acquire key technology from Europe (investing in Nel in Norway) and deploy it in high-value end-markets with strong policy support, such as the United States (via the DG Fuels SAF project).