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22 Jun LG Chem to Build Its First Hydrogen Production Plant
LG Chem [051910:KS] will launch its first hydrogen manufacturing plant in the second half of 2024 with an annual capacity of 50,000 tons, as reported by Reuters on June 20. The plant will produce clean fuel for the petrochemical sector, in keeping with the company’s long-term carbon reduction targets. According to the firm, this is LG Chem’s first plant to manufacture hydrogen directly rather than as a by-product. Furthermore, LG Chem intends to boost the utilization of clean energy sources such as hydrogen in the naphtha cracking process to 70% by 2025.
LG Chem anticipates its hydrogen plant to begin construction in the first half of 2023. In addition, the company wants to collaborate with Taekyung Chemical [006890:KS], South Korea’s manufacturer of carbonic acid gas, although no financial specifics on the partnership have been disclosed yet. The South Korean government is aggressively expanding the country’s hydrogen industry and has released a strategy in October 2021 to build a clean hydrogen production system with a capacity of 1m tons. The country hopes to increase the proportion of clean hydrogen in overall hydrogen consumption to 50% by 2030. Correspondingly, local firms such as Hyundai [005380:KS], SK [034730:KS], POSCO [005490:KS], Hanwha [000880:KS], and Hyosung [004800:KS] intend to spend a total of KRW43tr (USD33.2bn) for hydrogen development by 2030.