[Special Stock] Daechang Solution, Carbon Neutral Ammonia Special Zone Project... Core of Future Eco-Friendly Energy

[Asia Economy Reporter Hyungsoo Park] Daechang Solution is showing strong performance. The news that it will participate in the ‘Busan Ammonia Eco-friendly Energy Regulatory Free Zone’ project newly designated by the Ministry of SMEs and Startups and develop technology utilizing liquefied ammonia seems to be influencing its stock price. The government announced in July last year the goal of ‘zero carbon emissions by 2050’ and stated that it will build a low-carbon energy industry as a measure. To this end, it plans to foster a hydrogen-ammonia economy, highlighted as core eco-friendly energy sources, to replace fossil fuels in the future.

As of 9:48 AM on the 8th, Daechang Solution is trading at 607 KRW, up 6.49% from the previous trading day.

Ammonia, composed only of hydrogen and nitrogen, is attracting attention as a useful energy source because hydrogen can be extracted without any carbon emissions by separating nitrogen using an appropriate catalyst. Compared to liquefied hydrogen at an ultra-low temperature of minus 253 degrees Celsius, ammonia liquefies at minus 33 degrees Celsius, which has the advantage of requiring much less energy cost for storage and transportation.

The Ministry of SMEs and Startups plans to invest 38 billion KRW over two years from 2023 in the ‘Busan Ammonia Free Zone’ to demonstrate an eco-friendly energy base utilizing ammonia and prioritize its application to small and medium-sized coastal vessels. The 17 organizations participating in the project, including Daechang Solution, will operate small demonstration vessels in the free zone area to develop a demonstration system that extracts hydrogen from ammonia and supplies electricity to vessels through fuel cells. A newly developed mobile bunkering device using a liquefied ammonia standard tank will be deployed for testing and demonstration in vessel fuel injection.

Through the ‘Busan Ammonia Free Zone’ project, Daechang Solution will develop liquefied ammonia transfer tanks and storage systems by 2023, obtain necessary certifications, and supply them to domestic and international markets.

A company official explained, “Through our subsidiary Cryos, we are already supplying high-purity liquefied ammonia transport tanks required for semiconductor production processes to Samsung Electronics and others,” adding, “If we add design improvements and test evaluations necessary for maritime application, we can quickly develop and apply them to demonstrations.”

He also said, “In this ammonia free zone project, we will be designated as the lead operator for the transfer tank container and also participate in the development of ammonia fuel tanks and fuel supply systems for vessels,” adding, “The liquefied ammonia tank container to be developed will incorporate various new technologies to ensure safety, such as a wireless integrated control system.”

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