Hyosung, Linde to create world's largest liquid hydrogen plant

South Korea-based Hyosung Heavy Industries Corp. and global industrial gas supplier Linde plc. have agreed to establish the world's largest liquid hydrogen plant via two joint ventures to expand their presence in the hydrogen energy market.

On Feb. 5, Hyosung Heavy announced that the two companies have agreed on the partnership to boost their liquid hydrogen operations. In the deal, new JVs will be established — Linde Hydrogen Corp and Hyosung Hydrogen Corp.

The first JV, Linde Hydrogen, will handle liquid hydrogen production, with Linde holding a slightly higher 51% stake and Hyosung Heavy holding 49%.

The second JV, Hyosung Hydrogen, will be responsible for distribution and sales, with Hyosung holding the 51% stake and Linde having a 49% stake.

Last April, Hyosung Group Chairman Cho Hyun-joon signed an initial agreement with Linde to create a value chain for the production and transportation of liquid hydrogen as well as the installation of charging stations.

Moving forward, Linde Hydrogen will construct a liquid hydrogen plant at Hyosung Chemical Corp.'s Yongyeon site in Ulsan by early 2023. Upon completion, the world's largest liquid hydrogen plant will produce 13,000 tons of liquid hydrogen annually, enough supply to power 10,000 hydrogen cars for a year.

The plant is estimated to be worth around 300 billion won ($267 million).

Hyosung Hydrogen will oversee the distribution and sales of liquid hydrogen. The company plans to install 120 charging stations nationwide. 

"We plan to solidify our position as a leading player in the hydrogen industry by establishing a value chain from the production of hydrogen energy to its distribution," said Chairman Cho.

The Korean textile and chemicals conglomerate has been ramping up its efforts to sell assets and list major subsidiaries to raise funds to invest in new growth drivers, including hydrogen, carbon fiber manufacturing and data centers. 


Write to Jae-kwang Ahn at ahnjk@hankyung.com
Danbee Lee edited this article.