Korea Electric Power Corp. (KEPCO), Samsung C&T Construction Group and Korea Western Power (KOWEPO) signed a joint project development deal to build a green hydrogen and ammonia plant in Khalifa Industrial Zone Abu Dhabi (KIZAD), Abu Dhabi, the United Arab Emirates, in cooperation with Petrolyn Chemie, a UAE joint-venture. A signing ceremony took place at KIZAD headquarters on May 31.
The project calls for the construction of a green ammonia plant with an annual capacity of 200,000 tons at KIZAD.
The project will be implemented in a two-phase format. The first phase involves the construction of a plant with an annual capacity of 35,000 tons.
The second phase, to be launched soon after the completion of the initial project, will expand its annual capacity to 165,000 tons.
The project represents Korea’s first overseas green ammonia project for the group of companies, KEPCO, KOWEPO and Samsung C&T’s, dubbed “Team Korea.”
It is a symbolic project designed to establish a foothold in the huge future energy market whose annual value is estimated to grow to 130 trillion won annually by 2050.
KEPCO, KOWEPO and Samsung C&T Construction Group are expected to serve as a first mover by securing an upper hand in the global hydrogen ammonia market, and proposing new business models in unexplored markets as the global hydrogen ecosystem evolves.
The project will involve Korea’s first overseas green hydrogen business platform with a whole-cycle approach of development, investment, production, transportation and distribution.
It’s designed to achieve Korea’s national determined contribution of reducing greenhouse gas emissions, and raise the energy self-sufficiency rate.
Samsung C&T said electricity generated by photovoltaic power facilities will be utilized for the production of green ammonia, which emits no greenhouse gases.
The Korean government earlier announced a plan to cut greenhouse gas emissions by 40 percent from 2018 levels by 2030, and achieve carbon neutrality by 2050.
In particular, the Korean power generation sector is predicted to need 11 million tons of ammonia annually from 2030, and 13.5 million tons of hydrogen annually after 2050, but more than 80 percent of the demand is required to depend on imports.
It’s the participating companies’ first project to achieve carbon neutrality, and is expected to raise corporate competitiveness in the global green hydrogen market, plus expanding future growth engines by expanding and carrying out future business models.
Kim Do-yeon, a working-level official with the project, said, “It is burdensome to become Samsung C&T’s first green hydrogen project, but it is meaningful to successfully have completed a joint project development agreement ceremony.”
“Samsung C&T, together with KEPCO and KOWEPO, could launch an era of global carbon neutrality, representing Korea, and I’m pleased to play a pivotal role in the project,” Kim said.
In accordance with the national initiative, Samsung C&T plans to reduce dependence on fossil fuels and greenhouse gas emissions by applying ammonia mixed power generation, along with KEPCO and KOWEPO.
Kim Jong-ran, head of the Hydrogen Business Group at Samsung C&T, said Samsung C&T seeks to secure eco-friendly energy solutions to cope with the energy paradigm shift and make preparations to nurture the green hydrogen business.
The company said it recognizes the possibility of hydrogen as a core future energy business.
Samsung C&T plans to aggressively develop overseas green hydrogen businesses down the road, based on experiences of having implemented global renewable energy projects, a wide track record, and capabilities in the Middle East, as well as network with clients, he added.