SK Group and Plug Power aim to Build Hydrogen Gigafactory in South Korea

SK E&S Co., a South Korean natural gas power unit, has revealed plans for a collaboration with Plug Power, a U.S. hydrogen company, to establish a hydrogen gigafactory and research center in South Korea. The investment for this project amounts to 1 trillion won ($747 million), with SK E&S and Plug Power contributing 510 billion won and 490 billion won, respectively. The facility will focus on manufacturing hydrogen fuel cells for vehicles and water electrolysis platforms for power generation.

The gigafactory is expected to commence commercial operations in 2025 and will be situated in South Korea. Its primary objective is to produce green hydrogen using renewable energy through the process of electrolysis. Additionally, the joint venture intends to invest in the construction of liquefied hydrogen stations across South Korea, which is a crucial step towards enhancing the nation's competitiveness in the global hydrogen industry.

The hydrogen fuel cells manufactured at the facility will be supplied to SK's clean hydrogen complex in Boryeong, located approximately 190 kilometers southwest of Seoul. This complex, set to produce blue hydrogen from 2026 onward, plays a vital role in South Korea's strategy to achieve carbon neutrality by 2050.

By leveraging SK's strengths in energy production, distribution, and sales, combined with Plug Power's proprietary technologies, the collaboration between SK E&S and Plug Power, operating under the name SK Plug Hyverse, will significantly contribute to South Korea's competitive edge in the global hydrogen industry.

The investment announcement took place during President Yoon Suk Yeol's state visit to the United States, where he engaged with various business leaders and unveiled multiple new business collaborations and partnerships.

This joint venture marks a significant milestone in the advancement of green hydrogen production in South Korea, representing a crucial step towards realizing the country's goal of achieving carbon neutrality by 2050.