SK ecoplant has been an early pioneer in the hydrogen fuel cell sector within the eco-friendly energy market, establishing a comprehensive business portfolio that spans all aspects of green hydrogen supply. This includes renewable energy production, green hydrogen production through water electrolysis, distribution via green ammonia, and utilization through hydrogen fuel cells. A shining example of our efforts is the “Nujio’qonik” project, Canada’s first large-scale green hydrogen commercialization initiative. This project, capable of producing approximately 60,000 tons of green hydrogen annually through wind power generation and transporting it to other continents such as Europe, aims to commence green hydrogen production by 2025. It stands out for its swift progress among various global green hydrogen commercialization endeavors, and we are proud to be leading the charge in the all facets of this project, from overall design and investment to water electrolyzer supply and installation as well as ammonia production plant *EPC.

Most notably, it sets the benchmark for green hydrogen commercialization as a first mover in this field. Being the first case, the completion of the Nujio’qonik project is expected to establish standards for future green hydrogen projects including business models, export standards for green hydrogen, and green ammonia prices. Until recently, predictions indicated that green hydrogen commercialization would occur around 2040, with 2030 being the earliest estimate. We take pride in our pivotal role in a project that accelerates the realization of green hydrogen by more than 5 years.
Moreover, the Nujio’qonik project serves as a tangible demonstration of SK ecoplant’s commitment to becoming a “leading force in green hydrogen” and maintaining green hydrogen value chain it has consistently developed. We are notably the first to employ SOECs, the world’s most efficient water electrolyzer developed by Bloom Energy, our strategic partner and global fuel cell leader, that is using its proprietary technology to produce green hydrogen. Expectations are high for the future as we continue to advance in this direction.

SK ecoplant distinguishes itself with a novel renewable energy business model that deviates from conventional approaches. Key to success in the renewable energy sector is the “ability to develop”, and this applies even to specific domains such as solar power. Given its terrestrial nature, securing prime development sites and efficient power generation take precedence. In essence, the capacity to secure rights for substantial renewable energy production through large-scale project development is vital. SK ecoplant, stemming from its roots as SK E&C, boasts world-class international business development capabilities and the capacity to construct large-scale power plants. In essence, the company integrates “development capabilities” and “globalization capabilities” alongside “engineering prowess” to construct substantial power generation facilities, culminating in comprehensive competence across all aspects of renewable energy. I firmly believe that this ability to commercialize on multiple fronts positions SK ecoplant as a distinctive player in the eco-friendly energy arena. Furthermore, our integrated business proficiency serves as a significant asset, fostering discussions and collaborative proposals for new hydrogen projects across the globe including regions such as Australia, North America, and the Middle East, spanning a variety of business domains.

The current centralized power generation system, a predominant energy paradigm, faces limitations in expansive growth due to challenges arising from large-scale transmission and distribution. Consequently, the global distributed power generation market, aimed at delivering stable power in proximity to demand, is on the rise. SK ecoplant is taking a commanding position in both domestic and international market based on *SOFCs, an ideal power generation source for distributed power generation. Broadly speaking, we are pursuing two avenues in our business strategy. First, “urban distributed power generation” caters to facilities requiring uninterrupted 24-hour power supply such as the Bupyeong Data Center. Second, “RE100 distributed power generation” supplies 100% renewable energy to industrial complexes such as the Busan Eco Delta Smart City and large-scale urban consumers. Looking ahead, I anticipate that our competitiveness in the distributed power generation sector will be further enhanced if we can directly produce green hydrogen through the commercialization of SOECs.

There are compelling reasons for our attention to North America. First and foremost, North America boasts a well-established market for distributed power generation due to its vast geographical expanse. This market aligns perfectly with the expertise and experience we’ve garnered domestically. The U.S. in particular, is a region ripe with opportunities, and we are well-equipped to take a leading role there. Additionally, the U.S. is home to Bloom Energy, our strategic partner, and their fuel cell technology complements our business development and engineering capabilities seamlessly. Within just three years of launching our fuel cell business in the U.S., we have achieved visible success by securing numerous projects, particularly in critical facilities such as data centers and hospitals. Looking ahead, our expansion plans extend beyond the U.S. to encompass the entire North American region.

In the short term, our primary focus is on “decarbonization,” a critical aspect of the hydrogen business’s future. We aim to become a genuinely carbon-neutral energy provider by integrating various solutions including technology for capturing, utilizing, and storing the minimal carbon dioxide (CCUS) produced during hydrogen fuel cell power generation and heat recovery technology for converting heat into energy.
We are also eager to foster a green hydrogen ecosystem with domestic companies. For instance, in the case of the Nujio’qonik project, a portion of *Balance of Plant (BOP) for SOECs will comprise products from domestic companies. In the future, we plan to further enhance these opportunities, enabling SK ecoplant to contribute to the growth of the domestic green hydrogen industry by improving the manufacturing capabilities of Korean companies involved in green hydrogen and expanding their materials and parts business.

In a nutshell, our ultimate goal is to become the “world’s best green hydrogen provider.” When we examine recent global energy trends, it is evident that, much like the historical disparity in fossil fuel usage, there is a widening gap in renewable energy development among different countries. We firmly believe that the most effective means of bridging this gap in renewable energy lies in hydrogen. While various forms of hydrogen are currently in transition, the world’s imperative is to shift towards “green hydrogen” for the ultimate reason we utilize hydrogen: to harness energy without generating carbon dioxide. We invite you to anticipate SK ecoplant’s pioneering role in the global energy industry and our contribution to addressing the climate crisis in the forthcoming era of green hydrogen.