GS Energy Signs Korea's First Contract to Import Eco-Friendly Blue Ammonia

Abu Dhabi National Oil Company and Blue Ammonia Introduction Demonstration Project
President Heo Yong-su Presents Four Major ESG Management Strategies

Heoyongsoo, President of GS Energy

[Asia Economy Reporter Kim Hyewon] GS Energy is set to fully implement its 'ESG (Environmental, Social, Governance) 4 Major Management Strategies' following the introduction of Korea's first eco-friendly blue ammonia.

GS Energy, the energy-focused holding company of GS Group, announced on the 18th that it has signed a contract with Abu Dhabi National Oil Company (ADNOC) for a pilot project to introduce eco-friendly blue ammonia. GS Group is considering importing blue ammonia produced in Abu Dhabi for use not only in its affiliates' own demand but also for ammonia co-firing power generation and ammonia cracking research and development. After the pilot, full-scale investment will be considered. Blue ammonia is ammonia in which CO2 emitted during production is captured and stored.

This project is part of the ESG 4 major management strategies proposed by Heo Yongsu, President of GS Energy: ▲expansion of green power portfolio ▲leading the smart power solutions market ▲establishing a circular resource ecosystem ▲leading the restructuring of clean hydrogen economy infrastructure. This aligns with GS Group’s emphasis on 'future growth through strengthening digital capabilities and eco-friendly management' as it seeks investment and change.

President Heo said, "To practice ESG, which is the core of future corporate value, we will grow into a future energy company with a green, smart, and sustainable energy portfolio," adding, "Introducing blue ammonia for the first time in Korea is also to lead the establishment of clean hydrogen economy infrastructure and practice ESG."

First, GS Energy plans to make large-scale domestic solar and offshore wind power projects a pillar of future growth. It is currently pursuing a 200MW solar power project in Dangjin, Chungnam, aiming for commercial operation by December 2023, and is exploring opportunities in domestic offshore wind power projects.

In June, GS Energy also signed an investment contract with Nuscale, a U.S. company developing small modular reactor (SMR) technology. SMRs are recognized as a technology that contributes to carbon neutrality during the energy transition, complements the intermittency issues of renewable energy, and most efficiently contributes to green hydrogen production.

GS Energy has also entered the charging infrastructure construction and operation business essential to the electric vehicle (EV) ecosystem. In July, it launched a joint venture, G-Connect, with GNTEL, securing over 8,000 EV chargers nationwide. It is also promoting participation in the virtual power plant (VPP) business, which aggregates surplus power from multiple distributed energy sources, exchanges real-time information with consumers, and supplies power where needed.

GS Energy is exploring business opportunities to recycle EV used batteries. It plans to develop a battery-as-a-service (BaaS) business model. To this end, it signed a memorandum of understanding (MOU) in June with Mintec, a company possessing battery condition diagnosis and evaluation technology, and GS M-Biz, which has a nationwide automotive maintenance network. In September, GS Energy decided to pursue the establishment of a 'New Mobility' joint venture (JV) with POSCO to extract lithium, nickel, cobalt, and manganese from used EV batteries and resupply them as cathode materials for secondary batteries.

Starting with the introduction of eco-friendly blue ammonia through the contract with ADNOC, GS Energy is reviewing participation in projects that can continuously supply overseas clean hydrogen and ammonia. It also plans to develop a domestic blue hydrogen production model that reforms liquefied natural gas (LNG) and exports the CO2 emitted during this process to overseas oil fields.