Korea Western Power and Tallgrass Energy Collaborate on U.S. Green Hydrogen and Ammonia Project
Korea Western Power, a leading energy company, has entered into a partnership with Tallgrass Energy, a local energy company in the United States, to jointly develop a green hydrogen and ammonia production project. The memorandum of understanding (MOU) was signed on July 5 at Tallgrass Energy’s headquarters in Denver, Colorado, marking a significant step towards the introduction of clean energy solutions in South Korea.
The primary objective of this collaboration is to leverage Tallgrass Energy’s infrastructure to produce green hydrogen and ammonia in the United States and subsequently transport them to South Korea. Korea Western Power and Tallgrass Energy will conduct thorough feasibility studies to evaluate the potential for green hydrogen and ammonia production. They will also explore renewable energy generation projects that are essential for sustainable and efficient production processes.
Vincent Follaca, the head of Tallgrass Energy’s International Development Division, expressed pride in partnering with Korea Western Power, emphasizing the shared vision for a future powered by clean energy. As a company with extensive infrastructure in North America, Follaca stated, “We’re proud to form a partnership with a global leader like Korea Western Power, which has a vision for the future of clean energy.”
Kang Se-hoon, the head of Korea Western Power’s Overseas New Business Department, highlighted the importance of producing and introducing clean hydrogen and ammonia in line with the government’s carbon-neutral policy and the activation of the hydrogen economy. He emphasized the advantage of securing clean ammonia from locations like the United States, where supportive policies for clean fuels have been established.
The collaboration between Korea Western Power and Tallgrass Energy represents a significant step towards realizing a sustainable and carbon-neutral energy landscape. Green hydrogen and ammonia have gained recognition as vital components in the transition to cleaner energy sources. Green hydrogen, produced from renewable sources through electrolysis, can be used as a versatile energy carrier, powering various sectors such as transportation, industry, and heating. Ammonia, which can be derived from green hydrogen, has emerged as a promising carbon-free fuel for shipping and other heavy industries.
The project holds immense potential for both countries, fostering technological advancements and facilitating the exchange of expertise in the field of clean energy. The utilization of Tallgrass Energy’s existing infrastructure will enable efficient production and transportation, contributing to the global effort to mitigate climate change and reduce carbon emissions.
HD Hyundai Infracore and Korea East-West Power Collaborate on Hydrogen Gas Turbine Engine
In a significant development for clean energy technology, HD Hyundai Infracore, a construction equipment unit of South Korea’s HD Hyundai Group, has partnered with Korea East-West Power to develop and commercialize a hydrogen gas turbine engine. This memorandum of understanding (MOU) sets the stage for the integration of hydrogen gas turbine engines into power generation systems, contributing to the global effort to combat climate change.
The collaboration between HD Hyundai Infracore and Korea East-West Power aims to leverage the expertise of both companies to build a 1MW-class hydrogen gas turbine engine system. The system will consist of five 200kW, 11-liter emission hydrogen gas turbine engines, ensuring consistent and efficient power generation.
Korea East-West Power, a major power company in South Korea, will support the demonstration of these engines using the hydrogen supply facilities and power grid infrastructure of the Ulsan Power Plant. This partnership capitalizes on the existing infrastructure to accelerate the development and commercialization of the hydrogen gas turbine engine technology.
The hydrogen gas turbine engine holds immense potential in the fight against climate change, as it utilizes 100% hydrogen as a combustion fuel. This technology builds upon the existing diesel engine technology and facilities, allowing for cost savings and a faster path to commercialization. By utilizing hydrogen as a clean fuel source, these engines have the potential to significantly reduce carbon emissions and contribute to a sustainable energy future.
The joint venture between HD Hyundai Infracore and Korea East-West Power has set ambitious targets, aiming to have a prototype of the hydrogen gas turbine engine ready by the end of 2024. This timeline highlights the commitment of both companies to accelerate the development and deployment of clean energy solutions.
Additionally, the partnership intends to enter the hydrogen power generation market, with a focus on the Clean Hydrogen Energy Portfolio Standards (CHPS) to be implemented starting in 2024. The CHPS aims to promote the use of clean hydrogen in various sectors, including power generation, transportation, and industry. By aligning their efforts with this standard, HD Hyundai Infracore and Korea East-West Power position themselves at the forefront of the hydrogen power generation market, contributing to a greener and more sustainable energy landscape.
The collaboration between HD Hyundai Infracore and Korea East-West Power represents a significant step forward in the advancement of clean energy technologies. By harnessing the potential of hydrogen gas turbine engines, these companies are driving innovation and paving the way for a future powered by clean and sustainable energy sources.
POSCO Plantech Partners with Eon for Hydrogen Business Reorganization and Implementation Strategy
POSCO Plantech, a leading engineering and construction company, has taken a significant step toward its expansion into the hydrogen industry. Following approval from the Ministry of Trade, Industry, and Energy for its business reorganization plan, the company has been selected for the implementation strategy consulting support project. POSCO Plantech has signed a consulting agreement with Eon, a renowned management consulting agency, to receive expert guidance in enhancing its business restructuring capabilities.
The Business Reorganization Implementation Strategy Consulting Support Project aims to provide valuable advice and support to companies undergoing business reorganization. By focusing on business strategy design and financial structure improvement, the project assists in achieving the goals outlined in the reorganization plan. It is a collaborative effort supported by the Ministry of Trade, Industry, and Energy, with the Korea Productivity Headquarters entrusted to oversee its implementation.
In this consulting partnership, POSCO Plantech will benefit from comprehensive analysis and advice from Eon, covering various aspects of its business. The consultancy will include internal competency analysis, market environment analysis, business strategy establishment, financial status analysis, and financial management planning. With the objective and authoritative insights provided by Eon, POSCO Plantech aims to strengthen its capabilities in business restructuring over a three-month period.
One of POSCO Plantech’s notable ventures in the hydrogen field is the hydrogen PRG system. This system is designed as a modular packaged solution, offering multiple functionalities for hydrogen production. It enables the charging of hydrogen-powered vehicles and the supply of surplus hydrogen to nearby charging stations. Additionally, the system has the capacity to generate electricity for the sale or charging of electric vehicles.
The expansion into the hydrogen industry is a strategic move by POSCO Plantech, aligning with the global push for clean energy and decarbonization. Hydrogen is considered a key element in the transition to a sustainable energy future, offering opportunities for reduced carbon emissions and enhanced energy storage capabilities. POSCO Plantech’s engagement in the hydrogen PRG system reflects its commitment to driving innovation and contributing to the advancement of clean energy technologies.
By securing consulting support from Eon and participating in the implementation strategy consulting project, POSCO Plantech is positioning itself for success in the evolving hydrogen market. The expertise and guidance provided by Eon will enable the company to develop effective business strategies, optimize its financial structure, and strengthen its competitive edge.
The consulting agreement between POSCO Plantech and Eon signifies a significant milestone in the company’s journey toward establishing a strong presence in the hydrogen industry. Through strategic partnerships and a focus on technological advancements, POSCO Plantech aims to play a crucial role in shaping the future of clean energy and sustainable solutions.
Fair Trade Commission Approves Establishment of SL Energy Solution for Hydrogen Power Plants
The Fair Trade Commission (FTC) has given its approval for the establishment of SL Energy Solution Co., Ltd., a new company dedicated to the construction and operation of hydrogen power plants. This business combination involves four key operators: SK Energy Co., Ltd., LS Electric, Daehan Green Partners Co., Ltd., and Samcheonri Asset Management Co., Ltd. The FTC’s approval paves the way for increased private sector participation in the hydrogen power generation market.
The FTC, after receiving and examining the corporate combination report on June 6, announced on July 21 that the business combination does not pose any significant competitive restrictions. This decision signifies a positive step towards fostering a more vibrant and competitive hydrogen power generation market.
When examining the shareholding structure of SL Energy Solution, it is observed that SK Energy and LS Electric hold the highest stakes at 29.9% each, followed by Daehan Green Partners at 25.3% and Samcheonri Asset Management at 14.9%.
The newly established company, operating as a special purpose company (SPC), aims to generate hydrogen power through small-scale fuel cells installed at gas stations and idle sites in urban centers throughout Korea. It plans to participate in the general hydrogen power generation bidding market, set to open in 2024 under the Clean Hydrogen Power Generation Mandatory System (CHPS).
During the examination process, the FTC carefully considered concerns regarding the potential exclusion of competitors in the fuel cell power generation market and increased entry barriers in the future domestic hydrogen power generation sector due to the establishment of the new company. However, the FTC concluded that the fuel cell power generation market would not face significant competition restrictions. This determination is based on the expectation that a bidding market will be introduced, as outlined in the “Notice on Calculation of Purchase Volume by Year of the Hydrogen Power Generation Bidding Market.” Furthermore, the FTC anticipates the active participation of numerous private bidders, with the government responsible for deciding the bidding volume, buyers, and purchase volumes.
The FTC is committed to promptly reviewing business combinations related to market entry in emerging industries such as eco-friendly energy. This proactive approach aims to support the growth of related market ecosystems and ensure fair competition.