SK EandS Co., the natural gas power unit of South Korea's SK Group, said Tuesday it is spending 1 trillion won (US$747 million) with Plug Power, a U.S. hydrogen company, to build a large production facility for hydrogen-powered equipment in South Korea.
Through the joint venture, SK Plug Hyverse, SK EandS and Plug Power will invest 510 billion won and 490 billion won, respectively, to build a hydrogen gigafactory and a research center for hydrogen technologies, SK EandS said.
The gigafactory will produce hydrogen fuel cells for vehicles and water electrolysis platform for power generation, with commercial operations set to begin in 2025.
Electrolysis is a process by which electricity splits water to extract and produce hydrogen from the water. It is considered a technology vital to producing green hydrogen using renewable energy.
The hydrogen fuel cells will be supplied to SK's clean hydrogen complex in Boryeong, about 190 kilometers southwest of Seoul, that aims to produce blue hydrogen starting in 2026.
The investment came on the occasion of President Yoon Suk Yeol's state visit to the United States last week, during which a string of new business collaborations and partnerships were announced along the sidelines.
The joint venture also plans to invest in building liquefied hydrogen stations across South Korea. Liquefied hydrogen has a higher energy storage density and stability compared with gaseous hydrogen.
The joint venture will serve to lay the foundation for the national competitiveness in the global hydrogen industry using its strength in energy production, distribution and sales, and Plug Power's proprietary technologies, SK EandS said.
Source: Yonhap News Agency