South Korean firms to set up green energy hub in Australia

SK Gas

21/09/2022 04:13

By Sonali Paul
    MELBOURNE, Sept 21 (Reuters) - Three major South Korean
groups said on Wednesday they hope to build a green energy
export hub in Australia's Queensland state, aiming to produce a
million tonnes of green ammonia annually for export by 2032.
    The Han-Ho Hydrogen Consortium, launched on Wednesday by
Korea Zinc  010130.KS , petrochemicals group Hanwha Impact Corp
and SK Gas  018670.KS , plans to build up to 3 gigawatts (GW) of
renewable energy capacity in Collinsville in Queensland.
    That electricity would be used to power electrolysers that
split water and produce green hydrogen, which would then be used
to produce ammonia for export to South Korea, the Queensland
government and the companies said.
    The statement did not mention an estimated cost for the huge
project.
    Green ammonia is considered a key alternative to coal in
power generation and is seen as the best way to ship green
hydrogen, which could be used as a transport fuel as well as in
steel-making down the track. 
    "We look forward to working with our partners to unlock
Australia's potential to become a large-scale producer and
exporter of green hydrogen and its derivatives including green
ammonia," Korea Zinc Vice Chairman Yun B. Choi said in the
statement released by the Queensland government.
    Ark Energy, Korea Zinc's Queensland-based clean energy arm, 
said the 3 GW of new renewable energy capacity was key to
bringing down the cost of green hydrogen and ammonia, as the
energy cost makes up about half of the cost of the products.
    "The scale of this is unprecedented, but it's absolutely
fundamental to underpin the industrial scale production of green
hydrogen as a feedstock for green ammonia exports," Ark Energy
Chief Executive Daniel Kim told reporters in a livestreamed
media conference. 
    "There are many challenges ahead, including very prohibitive
cost curves for all things hydrogen," he said.
    The consortium aims to make a final investment decision
around 2027 or 2028, with construction expected to take around
four years, Kim said.
    Kim was not immediately available to comment on the
estimated cost for the green energy hub.

 (Reporting by Sonali Paul; Editing by Devika Syamnath)
 ((Sonali.Paul@thomsonreuters.com; +61 407 119 523;))