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SK E&S, Beijing Gas Group
sign LNG, blue hydrogen deal
PROJECTS SOUTH Korea’s SK E&S and China’s Beijing Gas produce green hydrogen – which uses renewable
Group have agreed to collaborate on LNG and energy.
blue hydrogen. The two companies signed a joint The two companies will now form a joint
co-operation agreement at the World Gas Con- team to explore specific projects.
ference in late May. This comes after SK E&S said in September
Under the agreement, the two companies 2021 that it would target production of 280,000
will explore opportunities to expand the LNG tonnes per year of blue hydrogen and 10mn tpy
value chain, share operational know-how and of green hydrogen by 2025. It is also aiming to
further co-operate on LNG imports and natural become a major global LNG provider in South
gas sales. Korea, supplying 6mn tpy of the super-chilled
On hydrogen, SK E&S and Beijing Gas intend fuel by 2023 and 10mn tpy by 2025. SK E&S
to develop the complete value chain, from pro- intends to use CCS to decarbonise its LNG oper-
duction to creating demand, according to the ations, supplying 1.3mn tpy of carbon-neutral
South Korean company. Blue hydrogen is pro- LNG based on CCS to South Korea by 2025.
duced from natural gas, with carbon capture Blue and green hydrogen are still nascent
and storage (CCS) used to address greenhouse industries that need to be established on a com-
gas (GHG) emissions from the process. Under mercial level. Green hydrogen in particular had
their agreement, SK E&S and Beijing Gas would been considered prohibitively costly, with addi-
produce the blue hydrogen at the latter’s Tianjin tional research and development (R&D) needed
LNG terminal, which is currently under con- to help bring costs down. However, rising natural
struction. A plan to blend hydrogen into natural gas prices mean that green hydrogen now looks
gas pipelines owned by Beijing Gas and build more competitive with blue hydrogen, which in
a hydrogen fuel cell power plant is also under turn has become more costly.
consideration, and the partners will also aim to
Week 23 10•June•2022 www. NEWSBASE .com P11
