TAIPEI (Taiwan News) — Delta Electronics announced Tuesday that it bought Federal Corporation’s Guanyin factory and land in Taoyuan for NT$6.95 billion (US$240 million).

According to Delta, the site covers around 112,000 square meters of land with 82,500 square meters of factory space, per CNA. The deal is aimed at supporting the company’s expansion into hydrogen energy and data centers.

Federal explained that after the transfer deal it will lease back part of the space under a sale-leaseback agreement, per Liberty Times.

Delta has been advancing hydrogen technologies in recent years. Last year, the company signed a technology transfer and licensing deal with the UK’s Ceres Power to bring hydrogen fuel cell stack technology to Taiwan.

In December, the company established its Delta Net Zero Science Lab at its Tainan Plant 2, building Taiwan’s first megawatt-scale hydrogen production and testing platform. The initiative brings in partners like Taipower and CPC Corporation to form a national hydrogen team, aiming for mass production of fuel cell stacks and systems by the end of 2026.

Delta Chair Cheng Ping (鄭平) said cutting emissions is important for the international community. He stressed that hydrogen can play a vital role in addressing greenhouse gas emissions and advancing energy transitions.