GS Caltex Strengthens Hydrogen Business Value Chain in Partnership with Dongseo Power and Yeosu City

[Asia Economy Reporter Hwang Yoon-joo] GS Caltex is accelerating the establishment of a hydrogen value chain by partnering with Korea East-West Power and Yeosu City to embark on a hydrogen fuel cell power generation project.

On the 17th, GS Caltex signed an "Investment Agreement for the Activation of the Hydrogen Economy and Carbon Neutrality" with Korea East-West Power and Yeosu City at Yeosu City Hall.

Through this investment agreement, GS Caltex will collaborate with Korea East-West Power to build a hydrogen fuel cell power plant and to demonstrate and commercialize CCU (Carbon Capture and Utilization) technology. Yeosu City will provide administrative support such as permits to ensure the smooth progress of the companies' projects.

First, GS Caltex and Korea East-West Power will invest 100 billion KRW to construct a 15MW (megawatt) hydrogen fuel cell power plant by 2023 on idle land within the Honam Thermal Power Plant of Korea East-West Power located in Yeosu City. The electricity produced by this power plant will be enough to supply approximately 50,000 households.

Once the hydrogen fuel cell power plant is completed, it will receive by-product hydrogen produced at the GS Caltex Yeosu plant and generate electricity through a chemical reaction with oxygen, producing only pure water as a by-product.

Unlike other hydrogen fuel cell power plants that use LNG as raw material, this power plant uses by-product hydrogen, emitting no carbon dioxide, making it environmentally friendly. Additionally, by receiving by-product hydrogen through pipelines from the nearby GS Caltex Yeosu plant, costs can be reduced. Furthermore, the hydrogen fuel cell power plant has the advantage of purifying ultrafine dust in the air through fine filters installed in the generator.

Moreover, the two companies plan to promote the demonstration and commercialization of CCU technology. Through the commercialization of CCU technology, they plan to capture carbon dioxide generated at the GS Caltex Yeosu plant and convert it into chemical products.

Huh Se-hong, CEO of GS Caltex, stated, "This investment agreement with East-West Power and Yeosu City has strengthened the hydrogen business value chain," adding, "We will continue to discover hydrogen-related businesses and expand our business into various eco-friendly energy sources."

Prior to this investment agreement, GS Caltex signed a "Business Agreement for the Production and Supply of Liquefied Hydrogen" with Korea Gas Corporation in May. Through this, they plan to build a liquefied hydrogen plant, liquefied hydrogen charging stations, hydrogen extraction facilities, and establish a liquefied hydrogen business value chain including the demonstration and commercialization of CCU technology.