South Korean natural gas power unit, SK E&S Co., has announced a joint venture with U.S. hydrogen company, Plug Power, to build a hydrogen gigafactory and research centre in South Korea.
The investment of 1 trillion won ($747 million) will see SK E&S and Plug Power invest 510 billion won and 490 billion won respectively, in a facility that will produce hydrogen fuel cells for vehicles and water electrolysis platforms for power generation.
The gigafactory, set to begin commercial operations in 2025, will be based in South Korea and will produce green hydrogen using renewable energy through the process of electrolysis. The joint venture also plans to invest in building liquefied hydrogen stations across South Korea, which is considered a crucial step towards national competitiveness in the global hydrogen industry.
The hydrogen fuel cells produced in the facility will be supplied to SK’s clean hydrogen complex in Boryeong, located about 190 kilometres southwest of Seoul. The complex, which aims to produce blue hydrogen starting in 2026, is a critical component of South Korea’s strategy to achieve carbon neutrality by 2050.
The collaboration between SK E&S and Plug Power will capitalize on SK’s strengths in energy production, distribution, and sales, along with Plug Power’s proprietary technologies. The joint venture, called SK Plug Hyverse, will contribute significantly to national competitiveness in the global hydrogen industry.
The investment was announced during President Yoon Suk Yeol’s state visit to the United States, where he met with numerous business leaders and announced a string of new business collaborations and partnerships.
This joint venture will serve as a milestone in the development of green hydrogen production in South Korea, which is considered a crucial step towards achieving carbon neutrality by 2050.
