LG Chem plans to set up a 50,000 tonne per annum hydrogen plant in South Korea by the second quarter of 2024 as it steps up efforts to slash carbon emissions.
The plant will convert methane to hydrogen by creating a chemical reaction under high-temperature steam, LG Chem said in a statement.
“It is a key component of LG Chem’s strategy to increase its use of renewable energy such as hydrogen in the NCC process by up to 70% by 2025, as well as to the company’s plans to actively utilize hydrogen in the production of renewable bio feedstocks, such as hydro-treated vegetable oils.”
LG Chem, which operates three naphtha crackers with a total ethylene capacity of 3.3 million tonnes per year, said it expected the construction of its hydrogen plant to commence in the first half of 2023 with an aim to achieve completion by the second quarter of 2024.
As part of its plan, LG Chem plans to cooperate with Taekyung Chemical, the largest carbonic acid gas producer in Korea, using high-purity CO2 as raw material. LG did not provide financial details.
Shares of LG Chem were trading down 0.2% in the morning trade, compared to a 1% fall in the benchmark KOSPI.
- Reuters with additional editing by Sean O’Meara
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