Image: Reuters Berita 24 English - LG Chem Ltd of South Korea announced on Monday that it plans to establish a hydrogen plant in South Kor...
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| Image: Reuters |
Berita 24 English - LG Chem Ltd of South Korea announced on Monday that it plans to establish a hydrogen plant in South Korea by the second quarter of 2024 to create 50,000 tonnes of hydrogen annually, in an effort to cut carbon emissions.
LG Chem stated in a statement that the new plant will use technology that converts methane to hydrogen by establishing a chemical reaction under high-temperature steam.
"The plant is an important part of LG Chem's strategy to increase its use of renewable energy like hydrogen in the NCC process by up to 70% by 2025, as well as the company's plans to actively use hydrogen in the production of renewable bio feedstocks like hydro-treated vegetable oils," says the company.
LG Chem, which operates three naphtha crackers with a combined ethylene capacity of 3.3 million tonnes per year, said it expects to start building its hydrogen facility in the first half of 2023 and finish in the second quarter of 2024.
LG Chem intends to collaborate with Taekyung Chemical, Korea's largest carbonic acid gas generator, which uses high-purity CO2 as a raw material. LG did not reveal any financial information.
In early morning trading, LG Chem shares were down 0.2 percent, compared to a 1% drop in the benchmark KOSPI.
