South Korea’s Kukdong Oil & Chemicals Co. has announced the construction of the country’s largest hydrogen gas production facility in Ulsan, aiming to bolster its presence in the renewable energy sector.
The facility, a project by K&D Energen Co.—a joint venture between Kukdong and Deokyang Energen Corp.—is scheduled for completion in May 2026.
The hydrogen gas production plant, set to be the largest commercial facility of its kind in South Korea, will have a production capacity of 92,000 normal cubic meters per hour (8,280 kg). The project involves an investment of approximately 218.5 billion won ($157 million) and is located at the Onsan National Industrial Complex in Ulsan. The hydrogen produced will primarily supply S-Oil’s Shaheen Project, which focuses on high-value-added petrochemical production within the same industrial complex.
Kukdong Oil & Chemicals, with its 40-year history in industrial lubricants and fuel sales, is making a significant shift towards the renewable energy market. The company’s venture into hydrogen production aligns with global trends emphasizing eco-friendly energy sources. By 2026, the completion of this project will position South Korea as a key player in the hydrogen energy sector, enhancing its industrial capabilities and reducing reliance on fossil fuels.
The production capacity of 92,000 normal cubic meters per hour is ambitious. However, the efficiency and sustainability of the production process will be crucial. The plant must adopt cutting-edge technologies to ensure competitive production costs and minimal environmental impact. The integration of renewable energy sources in hydrogen production, such as using excess solar or wind power for electrolysis, is a key factor for success.
The project’s financial viability depends on supportive regulatory frameworks and sustained government incentives. South Korea’s government has shown commitment to hydrogen energy, but long-term policies and financial support will be critical. The investment of 218.5 billion won is substantial, yet the return on investment will depend on the market demand for hydrogen and the ability to scale production efficiently.
The environmental benefits of hydrogen as a clean energy source are well-documented. Hydrogen can significantly reduce greenhouse gas emissions, especially in industrial applications and heavy transportation. However, the environmental impact of the plant itself, particularly in terms of resource use and potential emissions during production, must be carefully managed.
