Gwangyang Bay Area Free Economic Zone (GFEZ) said on Jan. 17 that GS Caltex plans to build large-sized hydrogen production, generation, carbon capture and liquefied plants and facilities at the Yulchon convergence logistics area near the Yeosu National Industrial Complex.
GS Caltex plans to enter future growth industries beyond the limits of the refinery industry through the projects.
GS Caltex, now producing more than 400,000 tons of hydrogen, plans to expand the clean energy business in Korea and abroad by bringing hydrogen into the clean energy mix.
The company’s latest move may be construed as its efforts to shift into new future industries, a departure from its business portfolio focusing on the conventional refinery industry.
GS Caltex aims to enter the global market based on a hydrogen energy supply chain the company will build in connection with the Yeosu regional industry ecosystem and large-sized production facilities.
The Yulchon convergence logistics complex, GS Caltex’s business site, is scheduled to be dedicated by 2027.
If an industrial site is created, GS Caltex will construct hydrogen production and generation as well as carbon capture, chemical equipment plants and facilities.
They are expected to produce 300,000 tons of hydrogen, create 2.4 million tons of new liquid cargoes annually, and hire more than 300 people, helping to reinvigorate the regional economy.
GFEZ Commissioner Koo Chung-gon said, “We’ve attracted massive investments into decarbonization and eco-friendly future industries to make the Gwangyang Bay area a sustainable future and GFEZ will contribute to realize successful investment, reinvigorate the regional economy and creating jobs through administrative support.”
GS Caltex plans to build large-sized hydrogen production, generation, carbon capture and liquefied plants and facilities at the proposed Yulchon convergence logistics area. A bird’s eye-view of the proposed the Yulchon convergence logistics area.
GS Caltex Reduces Greenhouse Gas Emissions
GS Caltex struck an MOU on a joint project to introduce and supply no-carbon steam at GS Tower in Gangnam-gu, Seoul with Vice President Kim Jung-soo, head of the Strategic Planning Office at GS Caltex, and President Kim Chang-soo of Namhae Chemical Corp. in attendance last Dec. 20.
Under the agreement, GS Caltex’s Yeosu plant will introduce no-carbon steam, produced from an idle sulfuric acid plant, owned by Namhae Chemical Corp., and substitute it for LNG material steam, the conventional one.
The newly produced no-carbon steam is an energy resource that emits no greenhouse gases.
The project is expected to reduce greenhouse gases some 70,000 tCO2 annually, compared to the use of the conventional LNG material steam.
In particular, the project is an exemplary sustainability business model through cooperation among companies within the Yeosu industrial complex beyond the simple reoperation of idle facilities.
From 2027, when new investment facilities are dedicated, GS Caltex will build a virtuous cycle business structure with Namhae Chemical in which the former supplies sulfur to the latter, which produces and supplies no-carbon steam to the former.
GS Caltex has been implementing lower carbon, biofuel, gas, recycle, white bio new projects through the Business Council, a companywide collaboration consultative body, via discussion of future businesses with related departments.
It found a solution to produce no-carbon steam by constructing a sulfur plant using sulfuric acid, a by-product of refining, in a process of considering low-carbon shift through the Business Council.
The refinery company explored an option of cooperating with Namhae Chemical whose idle sulfur plant is located in the same Yeosu Industrial Complex.
The option bore fruit by meeting carbon reduction and profit creation, the interests of both companies.
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