GS Caltex Partners with Korea Gas Corporation to Enter Hydrogen Market

[Asia Economy Reporter Hwang Yoon-joo] GS Caltex is making a full-scale entry into the hydrogen market by partnering with Korea Gas Corporation to engage in liquefied hydrogen production and supply business.

On the 28th, GS Caltex and Korea Gas Corporation signed a Memorandum of Understanding (MOU) for the successful launch and strategic partnership of the liquefied hydrogen production and supply business at GS Tower in Gangnam-gu, Seoul, with about 20 officials from both companies, including GS Caltex President Heo Se-hong and Korea Gas Corporation President Chae Hee-bong, in attendance.

Through this MOU, the two companies agreed to collaborate across the entire liquefied hydrogen business value chain, including ▲construction of liquefied hydrogen plants ▲construction of liquefied hydrogen charging stations ▲establishment of hydrogen extraction facilities ▲demonstration and commercialization of CCU (Carbon Capture & Utilization) technology.

First, the two companies plan to build a liquefied hydrogen plant with an annual capacity of 10,000 tons on idle land within Korea Gas Corporation’s LNG receiving terminal, aiming for completion in 2024. The 10,000 tons of liquefied hydrogen corresponds to an annual supply sufficient for about 80,000 hydrogen passenger cars, and will be supplied to the metropolitan and central regions in the future.

The plant to be constructed by the two companies has the advantage of being eco-friendly and cost-saving by using LNG cold energy, which was previously wasted during the vaporization process at the LNG receiving terminal, as energy, unlike other plants that use electricity and steam to lower the temperature to convert gaseous hydrogen into liquefied hydrogen. This is the world’s first such application.

The two companies will also engage in the supply business as well as liquefied hydrogen production. They plan to build dozens of liquefied hydrogen charging stations in the metropolitan and central regions in line with the completion of the liquefied hydrogen plant.

Liquefied hydrogen charging stations require only about one-third of the land area compared to gaseous hydrogen charging stations, making installation easier in urban areas and improving customer accessibility. Additionally, transporting liquefied hydrogen to charging stations requires less volume, allowing more than ten times the amount to be transported at once compared to gaseous hydrogen, thereby reducing costs.

Along with this, the two companies will also consider establishing hydrogen extraction facilities and conducting demonstration and commercialization projects for CCU technology. Hydrogen extraction facilities produce gaseous hydrogen using natural gas as raw material, and the produced gaseous hydrogen is used as feedstock for the liquefied hydrogen plant. Furthermore, through the commercialization of CCU technology, carbon dioxide generated during the hydrogen extraction process can be captured and converted into raw materials for chemical products and vehicle fuel.

Heo Se-hong, President of GS Caltex, stated, "By combining GS Caltex’s know-how in gas station and charging station businesses with Korea Gas Corporation’s expertise in LNG business, we will create synergy in the hydrogen business," adding, "We will unite our capabilities to lead the hydrogen market going forward."

This content was produced with the assistance of AI translation services.