Korea Southern Power establishes consortium to promote hydrogen in Busan

Korea Southern Power Co., Ltd (Kospo) has signed a Memorandum of Understanding (MoU) with Busan City, Hanwha Energy, Hanwha Solutions, and BNK Financial Group to develop a hydrogen economy, making Busan a carbon-neutral transition city.

Under the agreement, the partners will create a hydrogen ecosystem such as hydrogen energy production, storage, utilisation, and demonstration industries. They will also jointly promote R&D projects to secure new and renewable energy technologies such as hydrogen.

Busan City will support project-related licenses and permits. Southern Power will provide support for business development, technology improvement and human resource training in cooperative areas to foster a carbon-neutral industry in Busan. Hanwha Energy and Hanwha Solutions will support the hydrogen value chain, whereas BNK Financial Group will be in charge of financial support such as ESG finance.

The projects will include:

• LNG combined cycle power plant next-generation eco-friendly hydrogen turbine demonstration project
• Hydrogen demonstration research complex development project
• Overseas hydrogen bunkering fuel cell power generation
• CCUS (carbon capture, utilisation, storage) technology development
• Carbon-neutral green industrial complex
• Busan New Port Solar power installation, etc
• Other new projects will be additionally discovered through the promotion council meeting.

For the successful implementation of the agreement, a promotion consultative body will be established in August this year, including the Busan Chamber of Commerce, related institutions, and universities, aiming to start the work by 2022.

Lee Seung-woo, Southern Power President, said, “Carbon neutrality and energy transition are not a matter of choice, but tasks that must be implemented for a better future. We will spare no effort to revitalise the hydrogen economy.”