South Korea’s SK Group to Invest 18 Trillion Won ($16 Billion) in Hydrogen by 2025

By March 2, 2021 7   min read  (1283 words)

March 2, 2021 |

Fuel cells works, South Korea's SK Group to Invest 18 Trillion Won ($16 Billion) in Hydrogen by 2025

SK invests 18 trillion won within 5 years, including the construction of the world’s largest liquefied hydrogen plant, and leaps to No. 1 in the global market

  • Blueprint of 「SK Hydrogen Business Plan」 announced through the 3rd Hydrogen Economy Committee, presided over by the Prime Minister
  • SK invests 18.5 trillion won to build a hydrogen production-distribution-consumption ecosystem by ’25… Job creation effect 20.9 million people
  • Completion of the world’s largest liquefied hydrogen plant in ’23 and supplying a total of 280,000 tons of eco-friendly hydrogen in ’25
  • Establishment of hydrogen production cluster with Incheon City ㆍAll-round cooperation with Hyundai Motor Company such as establishment of’Korean version hydrogen committee’
  • Chairman Taewon Choi “SK will contribute to the realization of carbon neutrality by accelerating the creation of a hydrogen ecosystem”

Snag 31759c21SK will invest about 18 trillion won over the next five years to create a domestic hydrogen ecosystem in earnest. On the 2nd of March 2021, at the 3rd Hydrogen Economy Committee hosted by the Prime Minister held at SK Incheon Petrochemical, SK announced plans to build a domestic hydrogen ecosystem with the above contents, and started the business in earnest.

SK aims to become the world’s number one hydrogen company in the value-chain of hydrogen production, distribution, and consumption through investment in domestic hydrogen business infrastructure and partnerships with global companies.

The event was attended by government and local government officials such as Prime Minister Jeong Sye-gyun, the chairman of the Hydrogen Economic Committee, Minister of Trade, Industry and Energy Sung Yun-mo, Environment Minister Han Jeong-ae, Incheon Mayor Park Nam-chun, and Seo-gu Officer Lee Jae-hyun. Hyung-wook Choo, president of SK E&S and head of SK hydrogen business promotion, Yoon-seok Choi, president of SK Incheon Petrochemical, and others attended. did. Participants listened to SK’s strategy to build a hydrogen ecosystem and toured the site in SK Incheon Petrochemical, where the liquefied hydrogen production base will be built.

SK’s strategy to create a domestic hydrogen ecosystem is largely carried out in two stages. In the first phase, SK will supply 30,000 tons of liquefied hydrogen, the world’s largest by-product hydrogen**, in connection with Incheon City’s’bio-by-product hydrogen production cluster construction project*’ by ’23. It is planning to become the world’s No. 1 eco-friendly hydrogen company by additionally producing 250,000 tons of clean hydrogen (carbon free) in the vicinity of the Boryeong LNG terminal.

30,000 tons of liquefied hydrogen produced in the first stage is the amount necessary for 75,000 hydrogen cars, Nexo, to go around the earth at the same time (about 46,520 km), and the atmosphere in the metropolitan area is the same as planting 12 million trees. It is expected to greatly contribute to environmental aspects such as quality improvement.

In the second phase, when 250,000 tons are additionally produced, SK plans to produce and supply a total of 280,000 tons of eco-friendly hydrogen annually in Korea, and use these business experiences and capabilities to fully promote hydrogen business in Asia, including China and Vietnam.

In the process of establishing a domestic hydrogen ecosystem, SK created jobs in the fields of construction, shipbuilding, and automobile manufacturing, as well as fuel cells and hydrogen production, resulting in a total of 20.9 million employment inducement effects and social/economic benefits of KRW 34.1 trillion, including Incheon.

Invested a total of 18.5 trillion won to build a value chain such as hydrogen production, distribution, and sales

SK E&S, SK Group’s hydrogen business promotion company, will invest about 500 billion won to build a liquefied hydrogen production base to achieve the 30,000 tonnes of liquefied hydrogen production system, which is the first step goal. SK E&S plans to complete a hydrogen liquefaction plant with an annual capacity of 30,000 tons by purchasing a site of about 130,000 pyeong in the SK Incheon Petrochemical Complex in Wonchang-dong, Seo-gu, Incheon.

When this facility is completed, byproduct hydrogen supplied from SK Incheon Petrochemical is purified to high purity, processed into a liquid, and supplied to the metropolitan area.

The first phase project is also significant in that it is one of the pillars of the Incheon city hydrogen cluster construction project. The discovery of new hydrogen-related businesses, creation of high added value, inducement of new employment, and influx of population are expected to contribute greatly to the economy of the Incheon region. It is expected to become an important foundation for the expansion of hydrogen infrastructure at Incheon International Airport, Incheon Port, and industrial complexes.

In addition, SK E&S has invested about KRW 5.3 trillion by 2025 to complete the world’s largest clean hydrogen production base that produces eco-friendly hydrogen from natural gas (LNG), and produces and supplies clean hydrogen*** that removes 250,000 tons of carbon dioxide per year. The goal is to do it. SK E&S is the only plan to produce 250,000 tons of clean hydrogen per year in a single production base using carbon dioxide capture and treatment technology.

Large-scale investments such as hydrogen charging stations and fuel cell power plants

In addition to supplying liquefied hydrogen, SK plans to make active investments in establishing a distribution system for eco-friendly hydrogen.

SK operates 100 hydrogen charging stations nationwide by 25 to supply 80,000 tons of liquefied hydrogen per year, and builds a fuel cell power plant with a capacity of about 400 megawatts (MW) to build a pipeline dedicated to 200,000 tons of hydrogen per year. It is a plan to supply through.

As part of this, SK is also discussing ways to cooperate in various fields to revitalize the hydrogen economy, such as establishing a liquefied hydrogen charging station, expanding the introduction of hydrogen vehicles, and building a hydrogen experience center.

Chairman Tae-won Choi, who attended the Hydrogen Economic Committee on this day, said, “Hydrogen is an eco-friendly energy suitable for the domestic environment because it is not affected by the climate and the land area required for production is small. We will do our best to fulfill our corporate responsibility.”

Meanwhile, as SK and Hyundai Motor Group’s major executives, which are reinforcing cooperation in the electric vehicle battery business, meet in one place, expectations for the hydrogen business partnership that these two groups are spurring as future growth engine businesses are also increasing.

The management of the two groups held a meeting in advance of the Hydrogen Economic Committee on this day to discuss concrete cooperation measures, such as promoting the establishment of the’K-Hydrogen Council’, which is a CEO consultation for hydrogen charging infrastructure construction and cooperation between domestic companies and hydrogen business cooperation, in the first half of the year. Discussed. After the meeting, the two companies signed a business agreement with Incheon Metropolitan City and Incheon Seo-gu Office to establish the foundation for Incheon Metropolitan City’s hydrogen business. The parties to the agreement, including SK, will actively cooperate to expand the hydrogen economy by discovering and supporting various business models related to hydrogen in the Incheon area.

An SK official said, “SK will support the achievement of the domestic hydrogen economy roadmap target by expanding private investment such as large-scale hydrogen infrastructure and securing global core technologies.” We will build a solid business structure based on cooperation with various partners.”

Meanwhile, through the establishment of a joint corporation with Plug Power, a leading U.S. hydrogen market company that has recently secured its largest shareholder position, SK actively utilizes Plug Power’s technology and business experience to build a domestic hydrogen economy ecosystem such as the Incheon liquefied hydrogen business, and jointly utilizes the technology and business experience of the Asian hydrogen market. The partnership for advancement is also expected to materialize. SK has invested a total of 1.85 trillion won ($1.6 billion) by implementing an additional stock purchase option at the end of January, securing about 10% of the stake.

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