SK E&S Hydrogen Business Approved for 'Regulatory Sandbox'... 'Boryeong Blue Hydrogen Project' Kicks Off

Blue Hydrogen Production Using LNG Cold Energy
Cost Reduction and Expected Carbon Emission Reduction of 156,000 Tons

Expected aerial view of the 'Boryeong Blue Hydrogen Production Base' being developed by SK E&S and Korea Midland Power. Photo by SK E&S

[Asia Economy Reporter Donghoon Jeong] SK E&S has received approval for a 'regulatory sandbox' and is set to accelerate the world's largest 'Boryeong Blue Hydrogen Project.'

On the 20th, SK E&S announced that it received demonstration exemption approval for the project titled 'Production of clean hydrogen using LNG (liquefied natural gas) cold energy and establishment and operation of a liquefied hydrogen plant' at the Industrial Convergence Regulatory Special Committee meeting.

Through this demonstration exemption, it will be possible to build infrastructure for economically viable large-scale blue hydrogen production and liquefied hydrogen supply, giving momentum to SK E&S's plan to create a hydrogen ecosystem.

The regulatory sandbox is a system that exempts or defers regulations through demonstration exemptions or temporary permits under the Industrial Convergence Promotion Act when there are no standards or specifications in laws and regulations, making business promotion difficult.

This demonstration exemption was jointly applied for by SK E&S and Korea Midland Power Co., Ltd., for a large-scale blue hydrogen production base construction project underway in the Boryeong region of Chungnam Province.

The two companies plan to invest approximately 5 trillion KRW to build the world's largest blue hydrogen production base near the Boryeong LNG terminal, aiming to produce 250,000 tons of blue hydrogen annually. The project involves producing blue hydrogen by removing carbon dioxide generated during hydrogen production using CCS (carbon capture and storage) technology.

Of the 250,000 tons of hydrogen produced, 200,000 tons of gaseous hydrogen will be supplied via pipelines to nearby areas for hydrogen power generation such as fuel cells, and 50,000 tons will be supplied in liquefied hydrogen form to hydrogen refueling stations nationwide for mobility uses such as hydrogen vehicles.

The two companies plan to utilize 'LNG cold energy' in the blue hydrogen production and liquefaction processes. LNG cold energy is the energy generated when LNG at minus 162°C vaporizes, and it will be used in hydrogen reforming and carbon dioxide and hydrogen liquefaction processes.

For this, LNG pipelines need to be introduced within the blue hydrogen plant, but until now, there were no standards for installing or inspecting LNG pipelines beyond the boundaries of LNG terminals, limiting the use of LNG cold energy.

With this demonstration exemption approval, the use of LNG cold energy in the Boryeong blue hydrogen project becomes possible, opening the way for large-scale production of blue hydrogen that enhances both environmental friendliness and economic feasibility.

SK E&S expects that by utilizing LNG cold energy in blue hydrogen production and liquefaction processes, it can reduce electricity consumption and costs while cutting approximately 156,000 tons of indirect carbon emissions.

Additionally, the two companies also received demonstration exemption approval for the establishment and operation of a liquefied hydrogen plant within the Boryeong blue hydrogen production base. Currently, there are no technical or safety standards for liquefied hydrogen-related facilities. Previously, SK E&S received demonstration exemption approval and is pursuing the construction of a liquefied hydrogen plant with an annual capacity of 30,000 tons in the Incheon area.

With this demonstration exemption approval, SK E&S plans to steadily carry out its plan to build a full-cycle hydrogen ecosystem covering large-scale blue hydrogen production bases and hydrogen production, distribution, and utilization. Through this, it aims to provide new business opportunities to large, medium, small, and venture companies in the hydrogen sector, including hydrogen vehicles, hydrogen fuel cells, hydrogen turbines, and related materials and components, contributing to securing the global competitiveness of Korea's hydrogen industry.

Kwon Hyung-gyun, Vice President of SK E&S's Hydrogen Business Division, stated, "SK E&S aims to supply blue hydrogen in Korea that reduces costs and carbon emissions while ensuring environmental friendliness, safety, and convenience. Above all, we will prioritize safety in the demonstration project and continue to actively cooperate and closely consult with relevant ministries to advance the project."

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