Hyundai Motor, one of the world’s largest automotive groups, is set to enter the shipbuilding sector, delivering fuel cell electric propulsion systems from next year.

The Korean firm has signed a memorandum of understanding with compatriots Hyundai Heavy Industries and Korean Register to commercialise a small-sized maritime fuel cell model next year and larger systems after that.

“This MOU signals Hyundai Motor’s entry into the fuel cell-powered marine vessel market,” Hyundai Motor’s fuel cell center head Kim Sae-hoon said in a statement on July 8.

As well as shipping, Hyundai Motor is trying to sell its fuel cell technology to rail firms and power generation companies.