• SK ecoplant participates in a $4.5 billion green hydrogen commercialization project led by World Energy GH_2.
• The company has made an investment for 20% of equity and will be participating in the project development, becoming a key player in the global green hydrogen project.
• SK ecoplant’s involvement encompasses various aspects of the project including early-stage engineering design, installation of electrolyzer equipment and EPC of the green ammonia plant. These contributions have resulted in the company securing exclusive EPC rights of approximately USD 1.5 billion.
• The project itself focuses on production, storage, and processing of green hydrogen, which is then used to produce green ammonia that will be transported to Europe from North America for distribution. The project aims to produce green hydrogen in 2025 and green ammonia in 2026.
• SK ecoplant has completed a value chain that spans from wind power project development to green hydrogen production. This progress has elevated the company’s status within the industry, further bolstered by its CEO’s appointment as Chairman of Korea Wind Energy Industry Association.

SK ecoplant, the environmental and energy company, is a key participant in a massive global intercontinental green hydrogen commercialization project. As part of its green hydrogen value chain, SK ecoplant is actively involved in this initiative.

On May 17, SK ecoplant made an announcement regarding its participation in the first phase of the Nujio’qonik project, a $4.5 billion green hydrogen project. The company signed an Agreement with World Energy GH₂ at Lotte Hotel in Seoul. World Energy GH2 is developing a large-scale green hydrogen project based in the Stephenville region of Newfoundland and Labrador, Canada. The Agreement signing event was attended by François-Philippe Champagne, Minister of Innovation, Science and Industry of Canada, Kyung-il Park, CEO of SK ecoplant, and John Risley, Chairman of World Energy GH2, Sean Leet, CEO of World Energy GH₂, as well as executives of both companies, and government officials of both countries.

The project will be carried out at Newfoundland, a large island in the province of Newfoundland and Labrador in Eastern Canada where wind power will generate electricity that will be utilized to split water into green hydrogen without any carbon emission. This green hydrogen will be further processed to produce green ammonia, which will be transported to other continents including Europe.

Nujio’qonik, meaning ‘where the sand blows’ in the Mi’kmaw name, native language, is centered around the island’s reputation for exceptional wind quality, making it an ideal location for wind power generation. Positioned in the easternmost area of Canada, the island is strategically situated for exporting green ammonia to other continents, including Europe.

The project will be executed in three phases, with the initial phase carrying a budget of $4.5 billion. This phase aims to generate 1 GW of wind power for electricity production, alongside the installation of 600 MW of solid oxide electrolysis cells (SOEC) and proton exchange membrane electrolysis cells (PEMEC). These cells will facilitate the production of green hydrogen through the process of electrolysis. Additionally, the project will include the construction of green ammonia plants, which will process approximately 60,000 tons of green hydrogen into roughly 360,000 tons of green ammonia each year. The target for green hydrogen production to commence is March 2025, followed by green ammonia production in March 2026.

SK ecoplant’s participation in the project will involve significant activities. Its contribution will include the provision of front-end engineering design (FEED) services, as well as installation of electrolysis cells. The company’s participation will begin with pre-front end engineering design (Pre-FEED) and an objective review of the project’s overall framework. In addition, discussions are underway for the company to undertake the engineering, procurement, and construction (EPC) responsibilities of the wind farm. SK ecoengineering, SK ecoplant’s subsidiary, is expected to be responsible for the EPC aspects of the plants involved in the conversion process from green hydrogen to green ammonia. 

Through the Agreement, SK ecoplant has acquired a 20% of the stake in the project and secured the EPC exclusivity, establishing itself as a significant player in the massive intercontinental project. The Agreement includes a USD $50 million investment, enabling SK ecoplant to participate in the entire green hydrogen project by providing EPC services, providing essential equipment, and constructing facilities.

As part of the project, green ammonia produced from green hydrogen will be exported to European countries including Germany. Last year, Canada and Germany formed “hydrogen alliance” with the goal of establishing a transatlantic hydrogen supply network. This alliance is expected to accelerate the project, as it combines the production and storage of green hydrogen from renewable energy sources with its conversion into green ammonia for transportation to Europe. The comprehensive nature of this project enables it as a pivotal contributor to the early development of global hydrogen ecosystem.

Ammonia (NH₃), which is produced by combining three atoms of hydrogen with one atom of nitrogen, is an effective and popular method for storing and transporting hydrogen. It is a mature technical that producing ammonia, and ammonia can be easily liquified at room temperature. Compared to hydrogen, ammonia has 1.7 times larger storage capacity per unit volume. Additionally, existing storage and transportation infrastructure, as ammonia is already an attractive option for industries and agriculture, can be used for ammonia distribution, making it a convenient solution.

For this project, Siemens will provide PEMECs(Proton Exchange Membrane Electrolyzer) and Bloom Energy, of whom SK ecoplant is an investor, will supply SOEC(Solid Oxide Electrolyzer). Solid oxide electrolyzers are are high-temperature electrolysis cells that operate at temperatures up to 850℃. These cells require less electricity to split water at higher temperatures, resulting in more efficient hydrogen production. SK ecoplant and Bloom Energy plan to recycle the heat generated during the ammonia synthesis process, further reducing energy required for green hydrogen production and enhancing its price competitiveness.

World Energy GH₂, the project lead, is currently working on acquiring the project site, permits and licenses with the goal of starting green hydrogen and green ammonia production in 2025 and 2026, respectively. It has a plan to build its own infrastructure ranging from wind power generators to plants for electrolysis and ammonia synthesis as well as loading facilities at a port.

SK ecoplant is now an important partner in this project, thanks to its expertise in green hydrogen and engineering excellence. The company has already completed a green hydrogen value chain that includes renewable energy sources such as wind power and electrolysis utilizing SOECs. SK ecoplant has established itself as a leading company in wind power generation, evidenced by its ongoing development of a 2.6 GW offshore wind power project. Its subsidiary, SK oceanplant, is a globally recognized top-tier company specializing in substructures for offshore wind power installation. Moreover, Kyung-il Park, CEO of SK ecoplant, assumed the role of Chairman of the Korea Wind Energy Industry Association last month. With this intercontinental project, SK ecoplant aims to solidify its position as a leader in the global green hydrogen and electrolysis market by expanding its commercial production capacity of green hydrogen based on SOEC technology.

“As the first Korean company to participate in an intercontinental green hydrogen commercialization project, we have a competitive advantage and see more future business opportunities,” said Kyung-il Park, CEO of SK ecoplant. He continued, “SK ecoplant’s rapid execution ability and extensive experience will help us become a prominent leader in the global green hydrogen and green ammonia market in the future.”

.

About SK ecoplant

The company is the environment and energy arm of SK Group and leading the group’s future ESG business as a global environmental and energy company. By integrating AI and digital transformation into its entire value chain of the environmental business, SK ecoplant is upgrading its business and accelerating expansion of its operation to the global market from its global operation base in Southeast Asia. It has grown rapidly in the waste battery recycling sector and renewable energy sectors including hydrogen, fuel cells, offshore wind power and photovoltaic power. It is also committed to ESG-oriented management for sustainable growth, leading the efforts to solve global environmental and energy issues and achieve a circular economy for zero waste and net zero. For more information about SK ecoplant, visit http://www.skecoplant.com

.

About World Energy GH2

World Energy GH2 Inc. is a Newfoundland and Labrador-based renewable energy company. Our Project Nujio’qonik is a consortium of Canadian partners investigating the feasibility of the construction and operation of a cost-effective, wind power to green hydrogen/ammonia production facility located on the west coast of the province of Newfoundland and Labrador, Canada. Project Nujio’qonik aims to be Canada’s first commercial green hydrogen/ammonia producer created from 3+ Gigawatts of wind energy in one of the world’s best wind resource regions. https://worldenergygh2.com/