"From Natural Gas to Hydrogen... A Stepping Stone to Net Zero" [Net Zero is the Future 2]

'Cheongnok Hydrogen' Technology Holder 'CZero'
Investment Agreement with SK Gas... Pilot Production in Q1 Next Year
"Expecting Participation in Ulsan Hydrogen Complex"

[Editor's Note] As the social responsibility of companies and investors for sustainable development becomes increasingly important, it has been two years since ESG (Environmental, Social, Governance) emerged as a key management issue. ESG is now both a survival challenge and an essential element of corporate management. Especially, countries around the world are accelerating the transition to a carbon-neutral society by 2050, where carbon emissions are reduced to ‘0’, to keep the global temperature rise below 1.5 degrees Celsius. In Korea, carbon neutrality has become a national task directly linked to the survival of future generations.

It is now time for a grand discourse that can further spread ESG management through the practice of ESG management such as carbon neutrality and energy transition, transparent information disclosure, investment attraction and benefit provision based on that, and evaluation. Asia Economy is conducting a year-round project to examine the current status and issues of ESG management in Korea through domestic and international experts and to seek solutions to contribute to the long-term development of companies and the economy.

Padeul Sadi, CEO of CJ Zero Business Development Division

[Asia Economy Reporter Oh Hyung-gil] "We aim to produce the cleanest hydrogen in the world at the lowest cost. We expect that our technology to remove carbon from natural gas will help decarbonize a very important and rapidly growing energy source."

SK Gas plans to build a hydrogen complex on a 140,000㎡ site in Ulsan by 2025, which will include a plant producing hydrogen from natural gas. The U.S. startup ‘C-Zero’ holds the core technology of natural gas pyrolysis, which is key to hydrogen extraction. SK Gas signed an investment agreement with C-Zero at the end of last year and is concretizing the creation of an ecosystem for the hydrogen business.

Fadel Sadi, Head of Business Development at C-Zero, emphasized in a written interview with Asia Economy on the 18th that natural gas pyrolysis will be a stepping stone toward ‘Net Zero’. Net Zero means that the total emissions and absorption of greenhouse gases, including carbon dioxide, are equal, resulting in net emissions of ‘0’.

He said, "When natural gas is converted into hydrogen and solid carbon, hydrogen can be used as a clean and inexpensive energy source, and carbon can be permanently sequestered. It can be used for decarbonizing various industries, including power generation, process heating, hydrogen production for vehicles, and ammonia synthesis and refining processes."

Regarding C-Zero’s technology, he explained, "The basic method is a form of pyrolysis that uses an innovative thermal catalyst to extract carbon from natural gas (LNG) as high-density solid carbon. C-Zero’s staff are conducting research by combining knowledge of thermal catalysts with decades of experience building the world’s largest chemical plants."

[Image source=Yonhap News]

Hydrogen produced by natural gas pyrolysis is evaluated as ‘turquoise hydrogen’. Hydrogen is classified as ‘gray’, ‘blue’, or ‘green’ depending on the carbon emissions and emission methods during production. Turquoise hydrogen is considered a new alternative because it produces no carbon dioxide during production and uses less energy compared to green hydrogen.

Sadi explained that so far, they have succeeded in extracting 0.6 gigajoules of hydrogen and 15 kg of solid carbon from 1 gigajoule (GJ) of natural gas. He added, "This corresponds to 55 kg of carbon dioxide because 27% of carbon dioxide is carbon."

Sadi said, “We are developing a drop-in decarbonization system that can be placed between existing natural gas infrastructure and industrial natural gas consumers aiming to reduce carbon dioxide emissions. Our goal is to operate the first pilot production facility in the first quarter of next year and commercial production facilities by the end of 2024.”

C-Zero’s pilot production facility is expected to produce 400 kg of hydrogen and 1,200 kg of carbon per day. The production process will be gradually expanded, aiming for a daily hydrogen production of 270,000 kg at the final commercial production facility.

He added, “We are very pleased to have SK Gas as a major investor and partner in our goal of decarbonizing natural gas, and we look forward to collaborating to install our technology at the Ulsan hydrogen complex.”