South Korean companies advance hydrogen refuelling

SK Innovation E&S announced on 2 September that it signed a memorandum of understanding (MoU) with Deokyang Energen at the SK Green Campus in Jongno-gu, Seoul, for cooperation in the supply of gaseous hydrogen and hydrogen refueling station business.

Under this agreement, the two companies have agreed to expand cooperation in the hydrogen mobility sector by combining Deokyang Energen's gaseous hydrogen production and supply capabilities with SK Innovation E&S's capabilities in developing demand for hydrogen commercial vehicles, such as hydrogen buses, and building and operating charging stations.

First, Deokyang Energen will invest in establishing new gaseous hydrogen refueling infrastructure on a site adjacent to the existing liquefied hydrogen refueling station operated by SK Innovation E&S, and will supply gaseous hydrogen. SK Innovation E&S will be responsible for developing demand for hydrogen commercial vehicles and constructing and operating combined gaseous and liquefied hydrogen refuelling stations.

The two companies plan to review and proceed with the business in stages, focusing on five charging stations with high commercialisation potential, by comprehensively considering business performance and regional hydrogen demand. The total project cost per charging station is estimated at approximately 6 billion won, and about 180 tpy of gaseous hydrogen are expected to be supplied.

Through this collaboration, Deokyang Energen plans to expand its hydrogen supply sources from its existing industrial focus to the mobility sector. The strategy is to secure a stable base for new demand by extending its gaseous hydrogen production and supply capabilities, which have been built around industrial companies such as oil refining and petrochemicals, to the mobility market, including hydrogen buses. To this end, the company intends to invest a portion of the public offering funds raised through its listing into the construction of hydrogen refueling stations.

Deokyang Energen is continuously expanding its hydrogen production and supply capabilities by pursuing large scale hydrogen projects, such as supplying hydrogen for the Shahin Project in the Onsan National Industrial Complex in Ulsan and establishing a new hydrogen shipping center. Moving forward, the company plans to identify various new eco-friendly energy business opportunities based on its competitiveness in hydrogen production and supply.

Through this collaboration, SK Innovation E&S plans to diversify its hydrogen supply sources by adding gaseous hydrogen to its existing liquefied hydrogen-centered hydrogen mobility business, and to establish a stable charging infrastructure capable of responding flexibly to changes in supply conditions. SK Innovation E&S completed a liquefied hydrogen plant in Incheon in May 2024 with an annual production capacity of 30 000 tons and is currently supplying liquefied hydrogen to the domestic hydrogen mobility market.

Kim Ki-cheol, CEO of Deokyang Energen, stated: “This collaboration is significant in that it creates new demand for hydrogen by combining Deokyang Energen’s accumulated hydrogen production and supply capabilities with SK Innovation E&S’s expertise in hydrogen mobility demand development and charging infrastructure construction and operation. We will expand our hydrogen supply base, which has been centered on industrial use, into the mobility sector and build a stable and competitive hydrogen supply system based on the strengths of both companies.”

Jeon Young-jun, Head of the New Energy Business Division at SK Innovation E&S, stated, “For the hydrogen mobility market to grow sustainably, it is paramount to establish a foundation for the stable supply of competitive hydrogen. Based on a stable supply base encompassing both liquid and gaseous hydrogen, we will expand the demand for hydrogen mobility and contribute to the creation of a sustainable hydrogen ecosystem.”

Read the article online at: https://www.globalhydrogenreview.com/hydrogen/04092026/south-korean-companies-advance-hydrogen-refuelling/