SK E&S Accelerates 'Green Hydrogen' Business... Supplying Electrolyzer Facilities in Jeju with US Plug

Green Hydrogen Electrolyzer Project Accelerates
Collaboration with US Joint Venture Plug Power

1MW-Class Supply of Jeju Wind Power Linked Facility
First Domestic MW-Class PEM Electrolyzer
"First Step Toward Localization and Overseas Expansion"

Image of a 1MW-class polymer electrolyte membrane (PEM) type water electrolysis facility by the American hydrogen company Plug Power, which established a joint venture with SK E&S. (Photo by SK E&S)

[Asia Economy Reporter Moon Chaeseok] SK E&S is partnering with the global hydrogen company Plug Power from the United States to usher in the era of 'clean green hydrogen' based on water electrolysis technology. This marks a significant step as SK E&S accelerates its 'green hydrogen' business following its 'blue hydrogen' projects. Since green hydrogen is an energy source that produces no carbon dioxide emissions, successful localization of the equipment is expected to accelerate the energy transition not only for SK but also for South Korea.

SK Plug Hyverse announced on the 31st that it has signed a contract to supply 1MW (megawatt) class PEM (Proton Exchange Membrane) water electrolysis equipment with Korea Gas Corporation. The core of the project is to produce green hydrogen by electrolyzing water using renewable energy power generated at the Haengwon wind power complex in Jeju Island and supply it to hydrogen refueling stations within Jeju. Verification of equipment efficiency and safety will be conducted by the lead organizations, Jeju Energy Corporation and Korea Gas Corporation. This is the first time that PEM water electrolysis equipment with a capacity of 1MW or more per unit has been introduced domestically. SK Plug Hyverse is a joint venture established in January by SK E&S and Plug Power. The company explained, "The selection was based on recognition of our excellent technology and price competitiveness in the PEM water electrolysis field, overseas order achievements, and the proactive acquisition of demonstration exceptions for core devices to meet domestic safety standards."

PEM is a technology that extracts hydrogen by electrolyzing water and is widely applied in government national projects. It effectively compensates for the intermittent nature (power instability due to weather) of renewable energy power. Compared to the existing alkaline water electrolysis method, it requires less time to start operation and has superior load response capability, ensuring stable equipment operation even with fluctuating power supply. It is compact and has lower maintenance costs. This PEM water electrolysis equipment will also be used in the national project "Development and Demonstration of Hydrogen and Battery Storage System Technology Using Renewable Energy-Linked Green Hydrogen Production Technology," supported by the Korea Energy Technology Evaluation and Planning (KETEP) under the Ministry of Trade, Industry and Energy. It stores 600kg of hydrogen and 2MWh of battery capacity.

This contract is the first case of supplying water electrolysis equipment domestically after the establishment of the joint venture between the two companies. SK E&S explained that it is significant as it lays the foundation for equipment localization and overseas market expansion by utilizing Plug Power’s 40 years of accumulated water electrolysis technology. As of the first quarter, Plug Power is the world’s number one company in the PEM water electrolysis equipment market.

On the 28th of last month, SK Plug Hyverse secured a demonstration exception for high-pressure PEM water electrolysis equipment through the Ministry of Trade, Industry and Energy’s 'Industrial Convergence Regulatory Sandbox' system. Under current law, there are no safety standards applicable to the high-pressure 'stack,' a core device that splits water into hydrogen and oxygen in water electrolysis equipment, making domestic introduction impossible. With this demonstration exception secured, it is expected to contribute not only to the commercialization of PEM water electrolysis equipment but also to the establishment of domestic safety standards. Additionally, SK Plug Hyverse will participate in the national R&D project led by the Ministry of Trade, Industry and Energy, "Development of 10MW-Class Renewable Energy-Linked Large-Scale Green Hydrogen Demonstration Technology," and plans to build and operate the largest domestic 5MW-class PEM water electrolysis equipment per unit. From 2025, it is expected to become the largest green hydrogen supplier in South Korea, producing and supplying 450 tons of green hydrogen annually. To supply water electrolysis equipment and hydrogen fuel cell products domestically and in Asia in the second half of the year, SK Plug Hyverse is constructing a hydrogen equipment production and research base called the 'Gigafactory' in Cheongna International City, Seo-gu, Incheon, targeting completion by the second half of next year.

Lee Ji-young, Vice President of SK E&S Hydrogen Global Group and CEO of SK Plug Hyverse, said, "This Jeju demonstration project will be the first step toward localizing water electrolysis equipment and entering the overseas water electrolysis market, which is expected to grow rapidly. SK E&S will continue to expand technological cooperation with Plug Power to contribute to building a clean hydrogen-based domestic hydrogen ecosystem."

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