[People 人] Rewriting the 'History of Textiles' Woven by the Predecessor with '100 Years of Hydrogen Hyosung'

Near Ulsan Dongyang Nylon Factory
Liquefied Hydrogen Plant Groundbreaking Ceremony
"All Efforts to Build Hydrogen Value Chain"

[Asia Economy Reporter Choi Dae-yeol] Cho Hyun-joon (photo), Chairman of Hyosung Group, raised the theme of "100 Years of Hyosung" when he took office in 2017. While the founder Cho Hong-je, who established the company half a century ago, and former Chairman Cho Seok-rae brought the company to its current position, he clearly stated that he would focus on discovering new businesses for the next 50 years. The hydrogen business is a field where Chairman Cho is personally involved and putting his efforts into. At the groundbreaking ceremony for the liquefied hydrogen plant held on the 21st, Chairman Cho said, "It is a moving moment to open a new chapter toward 100 years of Hyosung in Ulsan, where Hyosung's history began."

The liquefied hydrogen plant, which will start operation in 2023, will be built on the site of Hyosung Chemical's Yongyeon plant. It is close to the Dongyang Nylon (currently Hyosung TNC) factory where Chairman Cho's grandfather, Cho Hong-je, started a new business after turning fifty in 1966. Cho Hong-je put great effort into this new business by marking the production of nylon yarn as a new venture and even called back his son, Cho Seok-rae, who was studying abroad at the time.

The textile industry accounted for more than 40% of the country's total exports in the 1970s, playing a significant role in the national economy. Until semiconductors became South Korea's top export item in the early 1990s, clothing maintained the number one position for over a decade, which was possible thanks to chemical fiber companies like Hyosung and Kolon, established in the 1960s. Cho Hong-je believed early on that investing in key industries to increase exports was a patriotic path.

Chairman Cho Hyun-joon's dedication to the hydrogen business is in the same context. Among the hydrogen businesses, which are gaining attention as next-generation energy sources, he identified areas where the company could excel. Hyosung Heavy Industries has stood out in specialized heavy industry equipment such as transformers, gas circuit breakers, and compressors since the 1960s. In 2000, it introduced the first commercial compressed natural gas (CNG) charging station in Korea. In 2008, Hyundai Motor proposed building a hydrogen charging station at its Namyang Research Center, recognizing Hyosung's considerable know-how in gas compression and charging.

Hyosung officially entered the hydrogen charging business from that time. Hyundai Motor also foresaw the increasing use of hydrogen vehicles as future mobility, allowing the two companies to collaborate early on. Hyosung is ranked number one in Korea with hydrogen charging systems installed at 18 locations nationwide, including public institutions such as the National Assembly and the Government Complex Sejong. A company official said, "Based on the high-pressure gas handling technology accumulated from supplying existing CNG charging station equipment, we have localized and produce hydrogen chargers, hydrogen gas cooling systems, and compression packages with our own technology. We also provide materials needed to build hydrogen charging stations, along with production, assembly, and installation, which is an advantage in efficiency."

Hyosung Heavy Industries completed the hydrogen charging station at the Government Sejong Complex in August last year. Photo by Hyosung

The liquefied hydrogen plant being built this time is led by a joint venture between Linde, a global gas and chemical specialist headquartered in Germany, and Hyosung. Linde has previously introduced liquefied hydrogen charging stations in its home country and is recognized for advanced technology in hydrogen production, storage, and distribution, including operating the world's first high-purity underground hydrogen storage facility. If the liquefied hydrogen plant by Hyosung and Linde starts operation as scheduled in the first half of 2023 and establishes an annual production system of about 13,000 tons, it will have the world's largest production capacity for a single plant. Along with its scale, the liquefaction method draws attention.

Hydrogen liquefaction can improve efficiency during transportation and charging processes, but it is still a field that cannot be easily ventured into due to insufficient technology and infrastructure. Since the hydrogen business is just beginning to establish its foundation not only in Korea but worldwide, early losses must be accepted, and mid- to long-term investments are necessary. At the groundbreaking ceremony, Chairman Cho said, "Hydrogen energy is the foundation of an energy revolution that will change humanity's future," and added, "We will continuously invest to lead the paradigm shift to hydrogen energy." This is a commitment to play a role in the industrial transition period, leveraging experience from operating long-term industries rather than merely seeking profit.

Hyundai Motor Group Chairman Chung Euisun (from left), POSCO Group Chairman Choi Jeong-woo, Hyosung Group Chairman Cho Hyun-joon, and SK Group Chairman Chey Tae-won listening to an explanation about the electric vehicle dedicated platform E-GMP.

The hydrogen business is difficult to excel in any single area alone, whether it is research and development to refine related technologies, production, storage and distribution, or charging. It is easier to understand by comparing it to the current energy value chain around us based on carbon fuels. It requires a series of infrastructure, including discovering crude oil, refining it into petroleum products, supplying it, and improving consumer accessibility for ease of use. Recently, Chairman Cho met with Hyundai Motor Group Chairman Chung Eui-sun, POSCO Chairman Choi Jeong-woo, and SK Group Chairman Chey Tae-won, agreeing to launch a hydrogen business council, regarded as the Korean version of the Hydrogen Council, around September.

In the long term, he also decided to take a more active role in carbon neutrality, which is directly linked to human survival. Along with localizing technologies related to liquefied hydrogen, they plan to research technologies that produce hydrogen without generating carbon dioxide, such as green and blue hydrogen. Through this, they expect to reduce 10% of the country's total carbon dioxide emissions. Chairman Cho said, "We will actively participate in building an efficient and economical hydrogen value chain by localizing hydrogen charging and supply facilities through continuous research and development."

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