SK E&S Co., the natural gas power unit of South Korea's SK Group, signed a preliminary agreement with a local utility company Thursday for a partnership on the production and utilization of green hydrogen.
Under the memorandum of understanding with the Korea Southern Power Co. (KOSPO), they will work together to produce green hydrogen and green ammonia based on renewable energy sourced from South Korea or overseas and use them as fuel for power plants operated by KOSPO, SK E&S said in a release.
SK Plug Hyverse, SK E&S' hydrogen venture with U.S. Plug Power, will also join the partnership.
SK E&S and SK Plug Hyverse plan to provide electrolyzers to produce green hydrogen, a type of hydrogen considered to be the cleanest form, as it emits no carbon dioxide during the production process.
Green hydrogen is produced through electrolysis, a process by which electricity, created from wind or solar power, splits water to extract and produce hydrogen from the water.
KOSPO will purchase the green hydrogen and ammonia produced from the joint project and use them as secondary fuel at its existing natural gas and coal power stations.
Using a secondary fuel like hydrogen with conventional fuels like coal, also known as co-firing, is gaining traction as a way to achieve carbon neutrality in related industries as it can reduce greenhouse gas emissions.
SK E&S and KOSPO also plan to seek new opportunities for potential clean hydrogen projects in foreign markets with ample renewable energy resources, SK E&S said.
Source: Yonhap News Agency