◇ Plan to import hydrogen in the form of ammonia to be used as eco-friendly fuel
◇ Build a supply chain for clean hydrogen including overseas production to domestic use
◇ Samsung C&T responsible for project development, Namhae to provide infrastructure and technology,
while KOSPO will verify clean hydrogen power generation and clean ammonia co-firing technology
The Trading and Investment Group (“T&I Group”) of Samsung C&T signed a memorandum of understanding (MOU) with Namhae Chemical and Korea Southern Power Co., Ltd (KOSPO) at its Jamsil Headquarters on the 27th as part of a broader effort to import and utilize clean hydrogen.
In response to the government’s endeavor to achieve carbon neutrality by 2050 and vitalize the hydrogen economy, clean hydrogen and carbon-free ammonia will be imported to KOSPO under this MOU, and the supply chain for clean hydrogen from abroad will be established.
Leveraging its global network and business capability acquired as a general trading company, Samsung C&T will be responsible for the development of the entire business model starting with the production of clean hydrogen abroad to import and utilization. On the back of its established trading business of energies, and various experience and knowhow on the renewable energy business, Samsung C&T will take strides to keep up with the transition to hydrogen economy.
Namhae Chemicals will participate in the establishment of the supply chain by providing the relevant infrastructure including ammonia storage tanks to better facilitate the demonstration of transfer, conversion and utilization of carbon-free ammonia. The company will be committed to further develop infrastructure to address the greater supply of clean ammonia by reviewing safety regulations and verifying technology, and providing respective measures.
KOSPO will provide its power generation facilities for the pilot project and take part in developing production sites to secure clean hydrogen and ammonia from abroad.
Cooperation in International Trading and Combined-Cycle Power Plant Construction Serving as a Foothold for Developing the Eco-Friendly Business
Drawing on its experience shared with each of the MOU partners, Samsung C&T will further build on this relationship in the hydrogen sector.
As a step forward in developing the hydrogen business in Korea, Samsung C&T has previously signed an MOU with Namhae Chemical in June. Samsung C&T has been selling Namhae Chemical’s fertilizers abroad, and this trading relationship has further expanded to the domestic hydrogen sector following the signing of the MOU. On the back of the 3-party-MOU signed with KOSPO, Samsung C&T and Namhae Chemicals will be committed to work together on a wide array of business models.
Samsung C&T and KOSPO collaborated on building the Kelar combined-cycle power plant in Chile in the past. The contract was won in 2013, which marked the first private power plant constructed and operated by Korean companies in Chile. Following completion of construction in 2017, the project has created a strong foothold in Latin America and served as a stepping stone for other Korean companies in the power generation and plant business.
Meanwhile, Samsung C&T is committed to actively seek growth by identifying new business models in newly rising, prospective areas, such as the environment and digital sector. Keeping in line with the global trend of transitioning to low-carbon and green, Samsung C&T was the first non-financial group in Korea to declare an exit from coal and continues to expand its portfolio for green businesses ranging from solar to renewable energy. New business models will be sought after in the hydrogen sector to gear up for sustainable growth and contribute to the society.