South Korea’s two major business group Samsung and Hyundai will collaborate with Global Green Growth Institute (GGGI) on a $1.2 billion clean energy project in Indonesia to produce green hydrogen.
Green hydrogen to be harvested from a geothermal energy source in the Sarulla Block, North Sumatra, Indonesia will be supplied to the Sei Mangkei Industrial Zone nearby as eco-friendly fuel for steel and cement making factories that heavily depend on fossil fuels.
The project led by GGGI, a treaty-based inter-governmental international development organization, can benefit all the countries involved in geothermal power sourcing, technology sharing, and green ammonia import in terms of carbon emission reduction.
To implement this plan, Samsung Engineering under Samsung Group will be responsible for design and a validity study, while Hyundai Glovis under Hyundai Motor Group for green ammonia shipping. State-run Korea Gas Corporation will launch green ammonia business based on the supply from Indonesia.
GGGI, which supports developing companies to achieve sustainable economic growth, has conducted a business validity study of the project since November last year and plans to complete it in the second half of this year, according to sources on Wednesday. Korean and Australian financial companies are reportedly inquiring about the possibility of their participation in this project.
In a response to carbon neutrality and other sustainability goals, Korean companies are paying more attention to ‘C-Tech’, a new term for development projects focused on climate, clean and carbon solutions designed to address environmental impacts.
Participating in overseas clean energy projects not only helps Korea meet its carbon reduction commitments but also secure a stable energy source in the course of decarbonization.
GGGI is a research partner to the 31st Vision Korea National Conference of Maekyung Media Group to take place at The Shilla Seoul on March 23 under the theme of “Winning Formula: C-Tech Race.” It is headquartered in Seoul.
By Choi Seung-jin, Kang In-seon and Minu Kim