Doosan Heavy Industries & Construction will be constructing Korea’s first hydrogen liquefaction plant. Doosan signed an EPC contract and investment agreement for the Changwon Hydrogen Liquefaction Project with Gyeongnam Province, Changwon City, Changwon Industry Promotion Agency (CWIP), BNK Kyongnam Bank, Hana Alternative Asset Management and the Korea Industrial Complex Corporation (KICC).
Under the terms of the contract, which is worth about 120 billion won (US$108 million), Doosan will be performing the EPC work for a hydrogen liquefaction plant and will also be providing operation & maintenance (O&M) services for twenty years thereafter, while Gyeongnam Province and Changwon City will be providing administrative support on the project and be fulfilling their commitment to purchase the liquefied hydrogen.
Meanwhile, BNK Kyongnam Bank plans to invest 61 billion won (US$55 million) of private funds out of the total investment amount of 95 billion won (US$85.8 million).
Doosan will be building the plant, which is to have a daily production capacity of 5 tons of liquefied hydrogen, within the grounds of its Changwon plant in Gyeongnam by 2022. The plant will start commercial operation in 2023, and the liquefied hydrogen will be supplied to hydrogen stations nationwide.
Hydrogen, a clean energy source, is liquefied at a cryogenic temperature of -253 ˚C, and is easier to store and transport than gaseous hydrogen since its volume is reduced by 800 times. Liquefied hydrogen filling stations also require half the ground area compared to gaseous hydrogen filling stations, making it possible to combine them with gasoline stations or LPG charging stations in the city.
The Changwon hydrogen liquefaction plant project has been selected as an “Industrial Complex Environmental Improvement Fund Project” by the KICC. The Korean government, which announced the Roadmap for Promotion of the Hydrogen Economy at the beginning of last year, held the second Hydrogen Economy Committee meeting on October 15 and approved five related agenda items, including the adoption of the Hydrogen Energy Portfolio Standards (HPS) by 2022.