Climate change
| Sector | Climate change |
| Sub-sector | Hydrogen |
| Location | Korea |
Through its specialised pipeline infrastructure, Approtium efficiently and reliably provides hydrogen to a wide network of connected companies, distributed across major industrial complexes in the highly industrialised Ulsan region. Using tube trailers, it also supplies high-quality hydrogen to customers with high-precision manufacturing processes, such as semiconductor manufacturing, which require ultra-high purity hydrogen products.
Additionally, Approtium captures the carbon dioxide produced from its hydrogen production plants via carbon capture systems to produce liquefied carbon dioxide, which is then distributed to clients for use in a variety of ways, including at critical stages within semiconductor manufacturing, to produce dry ice, and in shipbuilding processes.
Consistent with its net zero plans, the South Korean government aims for one third of the country’s energy to be sourced from low-carbon hydrogen by 2050.2 To achieve this goal, (including meeting the predicted future demand that will arise from domestic energy consumption) alongside an increase in local production of hydrogen, the country is expected to become a net importer of low-carbon hydrogen.
Increasing the distribution of low carbon-hydrogen will help drive its adoption and support South Korea’s energy transition, particularly in industrial processes and power generation, which cannot be decarbonised through renewable electricity alone.
Approtium currently manages captured carbon dioxide through a supply contract with industrial players for whom liquefied carbon dioxide is essential to their manufacturing processes. Longer term, its plan is to prove the feasibility of permanently storing captured carbon dioxide in geological reservoirs. As an initial step, Approtium has secured capacity to store 400k tons per annum into the East Sea depleted gas well project; the test is expected to commence in 2026.
Leveraging its existing network and experience in operating hydrogen infrastructure, Approtium is preparing to produce low-carbon hydrogen in order to further progress the buildout of hydrogen-related infrastructure and realisation of a hydrogen import industry. Low-carbon hydrogen is reformed from natural gas, but its carbon dioxide byproduct is captured and stored by carbon capture technology.
By further expanding its existing carbon capture facility and installing additional capabilities, Approtium will increase the carbon dioxide capture rate and gain valuable insights into capture operations and efficiency ahead of the anticipated release of blue hydrogen certification standards. In parallel, Approtium is forming international partnerships to import low-carbon and green hydrogen, with the aim of becoming a leading supplier of imported low-carbon hydrogen to fuel cell and hydrogen combustion power plants across South Korea.
Outcome
By leveraging its extensive network of pipeline and fleet of tube trailers, and together with its active expansion of hydrogen infrastructure, Approtium is well positioned to support the South Korean government’s plans3 to rapidly develop the nation’s hydrogen capabilities to support the nation’s 2050 net zero targets.
Approtium’s long-term focus on increasing production of or importation of low-carbon hydrogen will support the decarbonisation of various industrial processes as well as the country’s power generation capabilities, which could be difficult to achieve by utilising renewable energy alone.
Approtium will not only be a leader in providing industrial hydrogen solutions but will also focus on large-scale production and distribution of blue and green hydrogen across this highly industrialised country. Our ambition at Macquarie is to play a key role in supporting the expansion of Korea’s hydrogen economy and energy transition through various investments, such as Approtium."
Soojin Lee
Division Director
Macquarie Asset Management
All information current as at 30 June 2023, unless otherwise stated.
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