SK ecoplant to partake in $4.5 billion Canadian hydrogen project

Park Kyung-il, second from left, SK ecoplant CEO, and John Risley, third from left, World Energy GH2 chairman, pose for a photo during a signing ceremony held Wednesday in central Seoul. [SK ECOPLANT]

SK ecoplant secured exclusive engineering, procurement and construction (EPC) rights worth $1.5 billion for a green hydrogen project in Canada, in which the company is also participating as a stakeholder.

SK ecoplant will invest $50 million in the $4.5-billion project led by World Energy GH2, a Canadian developer, securing a 20 percent stake in the project.

On Wednesday, SK ecoplant signed a partnership agreement with Canada’s World Energy GH2 for its green hydrogen production project named “Nujio’qonik.” Green hydrogen emits no carbon in the process of its production.

The signing ceremony was held at Lotte Hotel in central Seoul with executives from both companies in attendance, which coincided with the second day of Canadian Prime Minister Justin Trudeau’s three-day visit to Korea.

SK ecoplant is participating in the green hydrogen project as a service provider as well as a stakeholder.

Under its phase 1 development plan, the Nujio’qonik project aims to build an onshore wind power plant on Newfoundland, an island in eastern Canada.

The electricity generated from the 1-gigawatt onshore wind turbines on the island will power a 600-megawatt green hydrogen production facility, which will use water electrolysis technology to split water into water and hydrogen.

A green ammonia plant, where hydrogen will be processed into ammonia before being shipped to Europe, is also part of the Nujio’qonik project's Phase 1 plan.

Ammonia, a compound of hydrogen and nitrogen, can be split into hydrogen through a cracking process using a catalyst, and is considered a cost-effective medium for the storage and transportation of hydrogen.

The water electrolysis facility is expected to produce 60,000 tons of green hydrogen a year, and the hydrogen will be processed into 360,000 tons of ammonia.

Hydrogen production will begin in March 2025, while ammonia production is set to start a year later.

For the project, SK ecoplant will provide the front-end engineering design for the entire project and take part in the installation of electrolysis cells for hydrogen production.

SK ecoplant is currently in discussion with World Energy GH2 for a possible EPC deal for the wind farm as well, according to the company.

SK ecoengineering, SK ecoplant’s subsidiary, will also be involved in EPC service for the conversion process from green hydrogen to green ammonia.

“As the first Korean company to participate in an intercontinental project to market green hydrogen on a commercial basis, we now hold a leading position in securing more future business opportunities,” said Park Kyung-il, SK ecoplant CEO.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]