SK E&S to build large blue hydrogen plant under regulatory sandbox program

Rendering of a massive complex to produce blue hydrogen in Boryeong, South Chungcheong Province [Source : SK E&S]

SK E&S and Korea Midland Power will jointly launch a 5 trillion won ($3.9 billion) project to build a massive complex to produce blue hydrogen in Boryeong, South Chungcheong Province under a regulatory sandbox framework.

The latest project is one of the large-scale investments in the industry that is responding to the Korean government’s special case program which is on path for expansion across green energy and high-tech sectors.

The Ministry of Trade, Industry and Energy on Tuesday approved 74 investment projects as a special case, including the SK E&S project for hydrogen production using cold heat of liquefied natural gas and LNG plant establishment and operation. The projects were cleared at a review board meeting held jointly with the Korea Chamber of Commerce and Industry (KCCI) and the Korea Institute for Advancement of Technology (KIAT).

SK E&S, the clean energy and solution unit of SK Group, said on Tuesday it received approval to introduce a facility that liquefies hydrogen by utilizing cold heat of minus 162 degrees Celsius generated in the process of vaporizing LNG. Liquefaction of hydrogen through cold heat from LNG can reduce transportation costs.

Other major facilities in the sector approved under the framework include hydrogen fuel cell-powered vessels, hydrogen fuel cells for power generation at LPG charging stations, and floating power transmission facilities.