Hyosung Chairman Cho Hyun-joon: "1 Trillion Won Investment in Green Hydrogen in Jeonnam, Annual Production of 200,000 Tons"

[Asia Economy Reporter Kim Hyewon] Cho Hyun-joon, Chairman of Hyosung Group, has set a goal to develop the Honam region as an advanced base for future businesses. He plans to build a high-tech materials production plant in Jeonbuk and establish core infrastructure facilities for the green energy industry in Jeonnam.

On the 24th, Chairman Cho signed a Memorandum of Understanding (MOU) with Jeonnam Province to foster the green hydrogen industry. Under this agreement, Chairman Cho will take the lead in creating 300,000 jobs and producing 200,000 tons of green hydrogen through offshore wind power centered around the sea near Sinan in Jeonnam.

The signing ceremony was attended by key executives from Hyosung, including Chairman Cho and Vice Chairman Lee Sang-woon, as well as Jeonnam Province officials such as Governor Kim Young-rok and Energy Industry Director Kim Shin-nam.

On the day, Chairman Cho stated, "We will mobilize Hyosung's accumulated technology and know-how in hydrogen business, heavy electrical equipment, and renewable energy to support the success of Jeonnam Province's offshore wind power complex project," adding, "We will contribute to making Jeonnam the mecca of South Korea's green energy industry."

Governor Kim said, "We will work together to realize both Jeonnam's ambition to become a green hydrogen hub linked with large-scale offshore wind power and Hyosung's vision of becoming a global top-tier company in the entire hydrogen value chain."

Hyosung to Produce 200,000 Tons of Green Hydrogen Using Wind and Other Renewable Energies

Hyosung plans to invest a total of 1 trillion KRW in the mid-to-long term to produce green hydrogen using renewable energy. The method involves water electrolysis using electricity generated from offshore wind power in Jeonnam to produce clean green hydrogen.

To this end, Hyosung will start building the largest domestic 10MW-class water electrolysis facility from this year. The company aims to increase green hydrogen production to a maximum annual capacity of 200,000 tons.

Hyosung plans to supply green hydrogen to major industrial complexes concentrated in Seoul and the metropolitan area, Ulsan, Changwon, and Busan. It also expects to export to some countries, including Japan.

For storage and utilization of green hydrogen, two liquefied hydrogen plants with an annual capacity of 10,000 tons each will be constructed, and liquefied hydrogen charging stations will be installed at nine major locations in Jeonnam. Additionally, the company plans to promote maritime transportation of liquefied hydrogen, completing vertical integration of the green hydrogen industry.

Alongside this, Hyosung plans to apply Carbon Capture, Utilization, and Storage (CCUS) technology to by-product hydrogen generated in industrial complexes in Jeonnam to promote blue hydrogen production and utilization projects.

Hyosung stated, "Once green hydrogen production is in full swing, it will create about 110,000 jobs by 2031, acting as a catalyst for economic revitalization in the Honam region following Jeonbuk."

Hyosung to Establish Offshore Wind Power Assembly Plant

Hyosung has also decided to actively participate in renewable energy projects such as wind power to generate electricity for green hydrogen production facilities. In February last year, Jeonnam Province announced, with President Moon Jae-in in attendance, plans to build the world's largest offshore wind power complex of 8.2GW in Sinan, Jeonnam by 2030. Additionally, a 5GW offshore wind power complex will be established in the eastern region centered around Yeosu.

Following Jeonnam Province's offshore wind power plan, Hyosung intends to begin construction of an offshore wind power assembly plant in the Jeonnam region by 2023. Hyosung Heavy Industries is preparing to establish a joint venture with the world's third-largest offshore wind turbine manufacturer this year and is currently pursuing KS certification for the 10MW-class offshore wind turbines to be produced in Korea.

Hyosung will also enter the power grid construction business related to offshore wind power. The market size for power grid construction is expected to reach 19 trillion KRW, involving supply of ultra-high voltage transformers, circuit breakers, and HVDC (High Voltage Direct Current) systems that can improve transmission efficiency of renewable energy.

It is also expected to supply large quantities of STATCOM (Static Synchronous Compensator) and Energy Storage System (ESS) to ensure stable supply and storage of electricity generated from offshore wind and solar power.

1 Trillion KRW Investment in Jeonbuk to Establish Advanced Materials Production Base Including Carbon Fiber

Chairman Cho announced in 2019 a plan to invest a total of 1 trillion KRW in Jeonju, Jeonbuk, to build the world's largest single-scale carbon fiber plant with an annual production capacity of 24,000 tons by 2028.

Hyosung was the first domestic company to successfully develop carbon fiber using proprietary technology and has been producing carbon fiber in Jeonju, Jeonbuk since 2013. After two expansions, it is expected to secure an annual production capacity of 6,500 tons of carbon fiber by July this year.

Carbon fiber is more than 10 times stronger than steel but weighs only a quarter, earning it the nickname "rice" of future industries. Recently, it has been spotlighted as an advanced material accelerating the hydrogen economy era by being used as an essential material for hydrogen vehicle fuel tanks.

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