A consortium of three South Korea’s private energy and construction firms will build a hydrogen and ammonia plant in the United Arab Emirates (UAE), in the latest of Korea’s green energy initiative expansions into the Middle East, according to industry officials.
This is Korea’s first overseas green hydrogen and ammonia project, a meaningful step toward gaining a strong foothold in the lucrative global energy market expected to generate an annual market volume of about 130 trillion won ($103 billion) every year from 2050.
State-run Korea Electric Power Corp. (Kepco) and its plant subsidiary Korea Western Power as well as Samsung C&T said that they have signed a joint development agreement to build the plant with an annual production capacity of 200,000 tons in Khalifa Industrial Zone Abu Dhabi (KIZAD).
Officials of the three local firms visited KIZAD to meet with their counterparts from Petrolyn Chemie, a joint venture set up by two UAE energy firms ― Petrolyn and Chemie Tech.
The project will build the plant in order to produce 35,000 tons of green ammonia a year, the first in a two-stage project to raise the capacity to 200,000 tons. The timelines for each stage have yet to be specified.
The three local firms said the project will function as a comprehensive platform, thereby contributing to meeting the national greenhouse gas reduction goals as well as increasing energy self-sufficiency. The objectives will be advanced by a healthy and efficient business model encompassing technology development, investments, production, distribution and logistics.
“It will be the first project for Korean firms to better achieve the carbon neutrality drive,” Kepco said in a statement. “We will dedicate efforts to utilize the opportunity to increase corporate competitiveness and fortify future growth drivers in the global green hydrogen market.”