Changwon Democratic Party City Council Members: "Prioritize Solutions for Normalizing Liquefied Hydrogen Plant, Push for Special Committee Formation"

The Democratic Party caucus of the Changwon Special City Council in Gyeongnam has urged the People Power Party to stop its political offensive regarding the liquefied hydrogen plant project, following the latter's demand for the release of the results of a specific audit related to the project.

On August 25, the Democratic Party city council members held a press conference at the city hall press center, stating, "Pressuring for the announcement of the audit results while the Gyeongnam Provincial Police Agency has already been asked to investigate is a procedural contradiction, and it inevitably gives the impression that more weight is being placed on political attacks than on uncovering the truth."

They further emphasized, "In order to put this project back on track, all parties must go beyond political differences and work together to find practical solutions."

The Democratic Party caucus of Changwon Special City Council in Gyeongnam is holding a press conference regarding the normalization of the liquefied hydrogen plant project. Photo by Lee Seryung

They also stated, "Changwon City needs to reconsider the lawsuit seeking confirmation of non-existence of debt," adding, "If the lawsuit continues, it could hinder cooperative discussions with the group of main lenders."

They said, "Resolving the lawsuit and establishing a credible forum for discussions will help minimize damage to citizens and contribute to the normalization of the project."

In particular, they pointed out, "By filing a lawsuit against the group of main lenders to confirm the non-existence of debt, Changwon City is effectively claiming it has no responsibility for the project. From the lenders' perspective, there is no reason to sit at the negotiating table with a city that claims to have no responsibility."

The caucus demanded, "Changwon City should acknowledge its responsibility and sit down with the group of main lenders for negotiations. We hope the acting mayor will take an active role and demonstrate responsible administration."

They also announced, "We plan to propose to the People Power Party caucus the formation of a special committee consultative body for the normalization of the liquefied hydrogen plant project. For the project to return to normal, both the People Power Party and the Democratic Party must work together."

The first domestic hydrogen liquefaction plant was completed at Doosan Enerbility's Changwon Factory in Gyeongnam. Photo by Gyeongnam Provincial Government

The Changwon liquefied hydrogen plant project was the first facility in the country to produce and supply liquefied hydrogen, launched in 2019. Changwon Industry Promotion Agency, Doosan Enerbility, and Korea Industrial Complex Corporation jointly invested to establish a special purpose company called 'HiChangwon' in April 2020, which took charge of operating the facility.

HiChangwon raised 71 billion won out of the total project cost of 105 billion won through project financing, and in July 2021 began construction of equipment at Doosan Enerbility's Changwon Factory to produce 5 tons of liquefied hydrogen per day, completing the facility in August 2023.

Initially, the plant was planned to produce 5 tons of liquefied hydrogen per day, up to 1,825 tons annually, supplying nearby research institutes, companies, and hydrogen charging stations. However, due to sluggish demand and decreased operating rates, operations were suspended until commercial operations began at the end of June this year.

During this process, HiChangwon declared a default, and the group of main lenders, who had lent 71 billion won to HiChangwon, acquired the company and the facility. They then billed the Promotion Agency 330 million won for 20 tons of liquefied hydrogen produced from June 27 to 30 this year.

They also demanded payment for 260 million won for 155 tons produced in July, to be paid in two installments.

Previously, the Changwon Industry Promotion Agency had committed to purchasing 5 tons of liquefied hydrogen per day, but as it failed to secure demand, it now faces the obligation to pay the group of main lenders approximately 30 billion won annually.

Recently, the Promotion Agency has reportedly decided to pay part of the liquefied hydrogen fee in advance and is seeking to negotiate with the group of main lenders on ways to normalize the project.

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