[Interview] "Hydrogen is Better than Batteries with Renewable Energy ESS"… Moon Sang-bong, CEO of Elkemtec

First Overseas Export of Domestic PEM Water Electrolysis
"Hydrogen Industry Policies Must Be Consistent"

Moon Sang-bong, CEO of Elkemtec, is being interviewed by Asia Economy at the Elkemtec headquarters in Magok-dong, Gangseo-gu, Seoul. Photo by Kang Hee-jong

Elkemtec, a company specializing in water electrolysis equipment located in Magok-dong, Gangseo, Seoul, is a frequent destination for famous politicians and high-ranking officials. Ahn Cheol-soo, a member of the People Power Party, visited Elkemtec in 2021 during his presidential candidacy with the People’s Party to tour the hydrogen production facilities. Prior to that, Kim Dong-yeon, then Deputy Prime Minister and Minister of Strategy and Finance, discussed ways to revitalize the hydrogen economy with hydrogen production companies at Elkemtec in September 2018.

"The company is located in Seoul, making it easily accessible, and it also has commercializable water electrolysis equipment, so many politicians and high-ranking officials have visited," said Moon Sang-bong, CEO of Elkemtec, recalling the time during an interview at the Magok-dong headquarters on the 11th. Elkemtec is one of the few companies in Korea capable of commercializing polymer electrolyte membrane (PEM) water electrolysis equipment. Recently, it achieved the milestone of being the first domestic company to export PEM water electrolysis stacks overseas.

Hydrogen, a clean fuel that does not emit environmental pollutants such as carbon dioxide, has been recognized as a next-generation energy source for several years, but the market has not opened up as much as expected. Various reasons can be analyzed for this, but the biggest cause is the high cost of hydrogen production.

Hydrogen is difficult to obtain in its natural state and must be produced through chemical reactions. There are two main methods: reforming natural gas or electrolyzing water. Both methods are still expensive to some degree and rely on government subsidies. Elkemtec develops and manufactures water electrolysis equipment that produces hydrogen by electrolyzing water. When the electricity used in this process is supplied from renewable energy sources such as solar and wind power, it is called green hydrogen. In other words, Elkemtec can be seen as a vanguard of green hydrogen.

At the Materials Process Research Laboratory of Elkemtech headquarters in Magok-dong, Gangseo-gu, Seoul, water electrolysis materials are being tested. Photo by Kang Hee-jong

CEO Moon Sang-bong founded Elkemtec in 2002 after working as a researcher at Hanwha General Chemical (now Hanwha Impact). The initial business was producing chlorine needed for water purification by electrolyzing saltwater. On-site facilities such as water treatment plants and swimming pools electrolyzed saltwater to produce disinfectants and sterilizers immediately.

Moon entered the water electrolysis equipment development field as the hydrogen boom began overseas in countries like Germany and Japan. Both water treatment and water electrolysis share many similarities as they are based on electrochemical technologies such as electrodes, binders, and electrolyzers. At the same time, Korea’s interest in hydrogen surged with the establishment of the Hydrogen Economy Promotion Committee in 2018. The government accelerated the hydrogen industry drive with the announcement of the hydrogen economy roadmap in 2019, bringing attention to Elkemtec as well.

Water electrolysis equipment is technically classified into alkaline water electrolysis (AEC), polymer electrolyte membrane water electrolysis (PEM), anion exchange membrane water electrolysis (AEM), and solid oxide electrolysis cells (SOEC). Among these, Elkemtec develops PEM water electrolysis equipment. Moon explained, "Alkaline water electrolysis technology has a long history and all technologies are publicly available, so China is flooding the market with low-cost products. We entered the PEM water electrolysis market, which has growth potential."

An electrolyzer stack is being tested at the Elkemtech headquarters research center located in Magok-dong, Gangseo-gu, Seoul. Photo by Kang Hee-jong

PEM water electrolysis has the advantage of using pure water and high efficiency but has been criticized for using expensive catalysts. Regarding this, Moon said, "Although iridium is used as a catalyst, the amount is very small, so it does not significantly affect the final cost."

Elkemtec has the production capacity and capability to commercialize 1.5-megawatt (MW) class water electrolysis equipment. Typically, a 1 MW water electrolysis facility can produce 200 normal cubic meters (N㎥) of hydrogen per hour. Converting 200 N㎥ to weight is about 18 kg, enough to refuel three Nexo vehicles. Elkemtec’s annual production capacity is about 100 MW.

Elkemtec is currently focusing on securing mass production technology. Currently, final assembly is done manually, which increases production costs. Automating this process is expected to significantly reduce equipment prices. Moon said, "If PEM water electrolysis equipment can be mass-produced, prices will drop significantly by 2030 to 2040."

In December last year, Elkemtec signed an export contract for PEM water electrolysis stacks with Czech company Nano Advanced s.r.o. This is the first time PEM water electrolysis equipment has been exported from Korea. Domestically, Elkemtec’s PEM water electrolysis equipment is used in the green hydrogen demonstration project at Jeju Haengwon. Additionally, PEM equipment is supplied to companies and research institutions that require small-scale hydrogen production.

Moon emphasized that a firm government roadmap for green hydrogen is necessary for the domestic hydrogen market to become active. He stressed the need for sustainable policies regardless of the administration to ensure predictability for companies. The hydrogen industry is evaluated to have weakened its commitment as administrations changed. In contrast, many overseas countries continue to support the hydrogen industry through policies. Moon said, "The green hydrogen market has grown to gigawatt (GW) scale in Europe, and India regulates the proportion of green hydrogen use."

Two challenges must be solved for green hydrogen to thrive: expanding renewable energy and reducing electricity costs. Moon particularly emphasized fostering green hydrogen as an energy storage system (ESS) for renewable energy. Instead of storing electricity generated from solar and wind power in battery ESS, it should be produced and stored as green hydrogen. Moon explained, "Hydrogen is more advantageous than batteries for large-capacity, long-term storage of renewable energy."

Lowering electricity costs using renewable energy to an economically viable level is also a challenge. Moon said, "Electricity costs account for 80% of the price of green hydrogen. No matter how good the water electrolysis equipment is, it is useless if electricity costs are high." He added, "If the electricity cost for green hydrogen is lowered to below 50 won per kWh, it will be more price-competitive than blue hydrogen," and stressed the need for government policy commitment to activate the hydrogen industry.

This content was produced with the assistance of AI translation services.