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SK E&S, Plug Power to build H2 gigafactory in Korea

  • Märkte: Electricity, Hydrogen
  • 02.05.23

South Korea refiner SK E&S and US fuel cell firm Plug Power will jointly invest 1 trillion won ($746mn) to build a hydrogen gigafactory in South Korea.

The investment will be made through the two companies' joint venture SK Plug Hyverse, SK E&S said on 2 May. SK E&S will invest W510bn and Plug Power will invest the remaining W490bn, in proportion to their stakes in the venture.

The gigafactory will mass produce hydrogen fuel cells and water electrolysis facilities for vehicles and power generation from 2025, with plans to supply to markets in South Korea and Asia. The gigafactory is also likely to supply fuel cells to SK E&S' planned 250,000 t/yr blue hydrogen plant located in South Chungcheong province's Boryeong city, and slated to come on line in 2026. Other details, such as the location of the gigafactory, were not disclosed.

This collaboration marks another of the many partnerships between the two firms, with their joint venture also planning another hydrogen gigafactory in Incheon which is planned to start up in the second half of this year.

The gigafactory deal is also part of a recent initial agreement that the two companies signed with American conglomerate General Electric and HD Korea Shipbuilding and Offshore Engineering (KSOE) to create what SK E&S terms the world's largest blue hydrogen ecosystem. This deal involves an investment of W6.7 trillion, and was part of 13 clean energy deals between South Korean and US firms.

SK E&S will produce the blue hydrogen and supply it nationwide for power generation through gaseous hydrogen pipelines and liquid hydrogen refuelling stations. GE plans to build a high-efficiency gas turbine with a 50pc hydrogen blend and introduce it in South Korea. KSOE is hoping to develop and build the world's first large-capacity liquefied CO2 carrier.

PPA deals

SK E&S also separately signed a 20-year power purchase agreement (PPA) on 18 April to supply global chemical firm BASF with renewable electricity, SK E&S said on 2 May.

BASF plans to replace about 16pc of its electricity demand at its South Korean operations with renewable power as of 2025, which is when the supply starts. The firms expect this deal to cut greenhouse gas emissions by 900,000t by 2045.

SK E&S had signed a PPA with South Korean cosmetic firm AmorePacific in March 2022, and with domestic chemical firm SK Specialty in August 2022. SK E&S' total renewable power capacity is over 3GW, including operational and developing capacities, with plans to expand this to over 7GW by 2025.


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