LG Chem's 'Net Zero' Initiative... Building Hydrogen Production Plant and Reusing Carbon Dioxide

Construction of a 50,000-ton Annual Hydrogen Plant in Daesan, Chungnam
Capturing and Reusing Carbon Dioxide Emitted During Hydrogen Production

Noh Guk-rae, Head of LG Chem's Petrochemical Business Division (right), is taking a commemorative photo after signing a business agreement (MOU) for cooperation in the carbon dioxide business with Park Ki-hwan, CEO of Taekyung Chemical.

[Asia Economy Reporter Oh Hyung-gil] LG Chem is building a hydrogen production plant at its Daesan plant in Chungnam and will start producing hydrogen to achieve '2050 Net-Zero.'

The company plans to construct a plant with an annual capacity of 50,000 tons by the second quarter of 2024, marking the first time LG Chem is building a plant to produce hydrogen directly, separate from by-product hydrogen.

The plant will apply technology that converts methane gas into hydrogen by reacting it with high-temperature steam. The most notable feature is the use of by-product methane, which can be secured from the NCC (Naphtha Cracking Center) process, as raw material, and the produced hydrogen will be used again as fuel for NCC pyrolysis.

The petrochemical business secures basic feedstocks such as ethylene, propylene, and butadiene by decomposing naphtha at high temperatures, and methane has been used as a heat source in the NCC process, resulting in most carbon emissions.

Since high-purity hydrogen emits no carbon dioxide during combustion, its use as a petrochemical fuel is expected to significantly reduce carbon emissions compared to existing fuels.

LG Chem expects to reduce carbon emissions by about 140,000 tons annually by replacing methane used in the NCC process with hydrogen. This amount is equivalent to offsetting by planting approximately one million pine trees.

LG Chem plans to expand the use of clean fuels such as hydrogen in the NCC process to up to 70% by 2025 and actively utilize hydrogen in bio-based raw material production as well.

Additionally, LG Chem is also working to establish a value chain where carbon dioxide generated during hydrogen production can be recycled as a necessary resource.

In cooperation with Taekyung Chemical, the largest carbon dioxide company in Korea, carbon dioxide generated during hydrogen production will be captured and supplied to Taekyung Chemical, making it possible to solve the carbon dioxide emission problem of reforming hydrogen through blue hydrogen production methods.

Taekyung Chemical currently has a carbon dioxide production capacity of 820 tons per day, and through collaboration with LG Chem, it is expected to increase by 600 tons, securing a total production capacity of 1,420 tons.

The two companies have also agreed to cooperate long-term on the smooth supply of carbon dioxide and various utilization methods.

No Guk-rae, head of LG Chem’s Petrochemical Business Division, said, "The construction of the hydrogen plant and the establishment of a carbon dioxide recycling system are aimed at creating a sustainable future for the petrochemical business through carbon neutrality," adding, "We will review and apply various methods to reduce carbon emissions, including hydrogen production and utilization technologies."