SK E&S and SK Plug Hyverse—a joint venture (JV) formed in January of this year by SK E&S and Plug Power—will work with Korea Southeast Power Generation (KOEN) to cooperate with green hydrogen and green ammonia projects based on renewable energy resources in Korea and abroad.

SK E&S signed a memorandum of understanding (MOU) with SK Plug Hyverse and KOEN regarding cooperation for carbon neutrality and the production of green hydrogen and green ammonia which will be consumed for co-firing at KOEN’s natural gas and coal based thermal power plants, by using electrolyzers to be produced in Korea by SK Plug Hyverse.

Green hydrogen and green ammonia co-firing are gaining attention as an eco-friendly and relatively low cost solutions for existing thermal power plants that can significantly reduce greenhouse gas emissions.

SK Plug Hyverse is a provider of turnkey hydrogen solutions for the global green hydrogen economy, to pursue integrated solution businesses throughout the clean hydrogen value chain in Asia, including electolyzers. The company plans to build a giga-factory in Incheon, a hydrogen manufacturing facility and research center.

According to the company, the significance of this MOU lies in the fact that SK Plug Hyverse, which is collaborating with Plug, a global hydrogen company, and Korea South-East Power, a public power company that accounts for approximately 10% of the total electricity supply in Korea, have joined forces in the green hydrogen and ammonia business, which is garnering attention as one of the future’s most important energy sources.

PEM electrolyzers that SK Plug Hyverse plans to supply are the only commercially proven technology with a quicker start-up time than the alkaline electrolyzers and superior load response capability, which enables it to work more effectively with the intermittently produced renewable energy to produce green hydrogen. In addition, PEM electrolyzers are known for high energy density and moderate cost of maintenance.

Based on 40 years of experience in PEM electrolyzer technologies and track records of supplying to NASA and US Navy, Plug is the leader in the global PEM electrolyzer markets. Recent announcements of supply agreements include 1GW in Denmark, 250MW in Australia and 120MW in the US. Plug is also targeting to produce 180,000 tones of green hydrogen annually itself in the US by using its own PEM electrolyzers (which usually requires 1GW or more electrolyzer capacity).

South-East Power plans to complete the construction of a carbon-neutral ecosystem by establishing a green hydrogen and ammonia power production business. South-East Power Co is pursuing the objective of reducing greenhouse gas emissions by 48% by 2034 through expanding low-carbon LNG conversion and developing CCUS technology.

This MOU is expected to serve as a cornerstone for the global trade era of clean hydrogen. According to the ‘First Basic Plan for the Implementation of the Hydrogen Economy’ released by the government last year, the supply of hydrogen is expected to increase from 220,000 tons in 2020 to 3.9 million tons in 2030 and 27.9 million tons in 2050 as the demand for hydrogen cars and fuel cells increases.