(Rendered image of H2's flow batteries in high-temperature desert area)

On September 26, H2 Inc. signed an agreement under the 2025 Deep Tech Challenge Project (DCP), a national initiative supported by the Korean government. Through this program, H2 is accelerating the commercialization of high-temperature vanadium flow battery and positioning itself as a leading player in the global long-duration energy storage market.

The Deep Tech Challenge Project is one of Korea’s most competitive innovation programs, designed to help companies address grand challenges with global impact. Each year, only a handful of enterprises are selected after intense competition, and they receive long-term support to simultaneously scale technology development and commercialization.

H2’s awarded project, “World’s Highest Power-Density Vanadium Flow Battery Storage for High-Temperature Climates”, will be executed with a total budget of approximately USD 4.7 million, including government funding, private matching, and equity investment from KRun Ventures. Notably, KRun Ventures has invested in H2 for two consecutive years, reflecting its continued confidence in the company’s growth trajectory.

The project directly targets regions where conventional lithium-based battery storage has struggled—such as the Middle East, Africa, Arizona (USA), and the Australian outback. In these markets, the average daily ambient temperature around 35°C can push container surface temperature to nearly 64°C, making stable operation difficult due to risks of thermal runaway and fire. By contrast, H2’s vanadium flow battery, combined with advanced AI-driven thermal management, aims to deliver:
- 70% higher power density compared to conventional designs
- 50% lower cooling power consumption
- Proven reliability under extreme climate conditions

A dedicated team of 35 experts from H2, a lead company, and the Korea Institute of Energy Research (KIER) will execute the project in collaboration.

Dr. Shin Han, CEO of H2 Inc., commented:
“This milestone demonstrates that vanadium flow battery technology is ready to overcome one of the toughest barriers to global energy storage deployment—high-temperature and desert climates. It marks a turning point, allowing H2 to actively expand its footprint in hot-weather areas like the Middle East and Australian markets."