GS Caltex Corp., a South Korean oil refiner jointly owned by Chevron and GS Group, announced a partnership with Korea South-East Power Co., Ltd. (KOEN) to establish a clean hydrogen value chain.
The two companies signed a memorandum of understanding (MOU) for cooperation in the production, supply, and utilization of clean hydrogen and other carbon-neutral projects.
Clean hydrogen refers to hydrogen that does not emit carbon dioxide in the process of producing hydrogen or emits significantly less carbon dioxide by capturing and storing the generated carbon dioxide. The Yeosu Hydrogen Hub project will be the main focus of the partnership between GS Caltex and KOEN.
GS Caltex plans to build a clean hydrogen production facility and supply the clean hydrogen to the Yeosu Industrial Complex. In turn, KOEN will operate power generation facilities using clean hydrogen. Establishing a clean hydrogen value chain is of great significance in reducing carbon dioxide in the Yeosu area, where many carbon dioxide-emitting plants are concentrated.
The partnership between GS Caltex and KOEN extends beyond the production of clean hydrogen. The companies plan to promote cooperation for implementing carbon neutrality, such as discovering a joint business model for GS Caltex’s carbon reduction in the mid-to-long term.
“With this business agreement as momentum, we will contribute to carbon neutrality through clean hydrogen production in Yeosu and create various cooperation opportunities with Korea South-East Power,” said Kim Jung-soo, head of GS Caltex’s strategic planning office.
