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Samsung C&T and KSS line work on clean hydrogen value chain

Anela DoksoBy Anela Dokso21/11/20223 Mins Read
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Samsung C&T has made progress toward expanding its related portfolio amidst growing interest in the hydrogen economy as a clean substitute for fossil fuels.

The company’s Trading & Investment Group and shipping firm KSS Line have a contract that will see them work together on a crucial link in the clean hydrogen value chain.

Because it only emits water vapor when burned for energy or as fuel, hydrogen is a very promising energy source. The issue is that clean hydrogen production and preparation are necessary for the means to fully justify the ends. For instance, it is considered unproductive when hydrogen generation itself depends on fossil fuels.

However, “green hydrogen”—a clean solution to the fossil fuel issue—can be produced when hydrogen is recovered from ammonia. Ammonia can be utilized as a useful liquid carrier for transportation over large distances by sea, making it a significant component of the clean hydrogen value chain.

KSS Line, Korea’s sole ammonia carrier operator, will contribute its collective knowledge to assist Samsung C&T in moving ammonia by sea so that it can be kept at the destination and then transformed into clean hydrogen for use as a fuel or energy source.

Value chain for ammonia-based clean hydrogen

In accordance with their contract, Samsung C&T and KSS Line will work together to ensure logistics competitiveness, employing eco-friendly fuel propulsion ships and collaboratively determining the most effective ammonia transportation techniques.

Samsung C&T has been looking for potential business ventures as the clean hydrogen value chain has grown for a while. Its collaboration with KSS Line is the most recent in a string of strategic alliances with businesses that have resources at every stage of the supply chain.

The goal of Samsung C&T is to grow the complete clean hydrogen supply chain, from constructing abroad clean hydrogen production projects to connecting Korean consumers, based on its worldwide network, trading, and local and international business development skills. The number of hydrogen-powered vehicles in Korea is anticipated to increase from just over 19,000 in 2021 to 30,000 by 2030 as the government works to expand its hydrogen economy more broadly. By 2036, hydrogen is also projected to account for more than 7% of the country’s electricity output.

Samsung C&T recently unveiled their “2050 Net Zero” plan, which aims to reach 100 percent renewable energy by 2030 and net zero carbon emissions by 2050, as an extension of its coal-exit announcement in 2020. Among other commercial endeavors, the Trading & Investment Group’s net zero initiatives include the creation of green energy projects like hydrogen and battery recycling.

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