Tallgrass and Korea Western Power Team Up to Advance South Korea’s Clean Energy Goals
Tallgrass and Korea Western Power announced a cooperation agreement for the development of gigawatt scale green hydrogen and ammonia production.
HOUSTON, TEXAS—(BUSINESSWIRE)—Today, Tallgrass and Korea Western Power (“KOWEPO”) announced a cooperation agreement for development of gigawatt scale green hydrogen and ammonia production.
The scope of the cooperation agreement includes a comprehensive feasibility study for green hydrogen production—a process that makes hydrogen from renewable energy and electrolysis. This announcement builds on a previous memorandum of understanding Tallgrass executed with Intersect Power, a leading clean energy provider, to jointly develop green hydrogen for export to Asia as ammonia. KOWEPO expects to convert this green hydrogen to clean ammonia, using Tallgrass infrastructure, to support South Korean decarbonization and the broader global demand for clean energy supply.
In July 2022, Tallgrass, KOWEPO and Hanwha PSM signed a memorandum of understanding to jointly develop a hydrogen co-firing gas-turbine project in the United States. This new agreement is an extension of the well-established relationship between KOWEPO and Tallgrass on global decarbonization initiatives.
The agreement marks the first instance of a Korean company promoting green hydrogen and ammonia production in the U.S. and has been advanced by U.S. government initiatives like the Inflation Reduction Act, which strengthens domestic clean energy production and U.S. global leadership in the energy transition.
“As we heard during President Yoon’s visit to the White House last month, our two nations are collaborating in all the areas that matter most – and there is no more urgent priority than all of us joining forces to address the climate crisis” said Vincent Follaca, Vice President of International Development at Tallgrass. “As operators of large-scale infrastructure spanning North America, we are proud to collaborate with global leaders, like KOWEPO, who share our vision for a clean energy future.”
KOWEPO plans to expand domestic Korean renewable energy capacity to 10.7 GW by 2035, raising the renewable power generation rate from 7% currently, to 23%. To this end, from 2030, 200,000 tons of hydrogen and one million tons of ammonia will be used annually as co-firing fuels in KOWEPO power plants.
“It is essential to produce and procure clean hydrogen and ammonia from overseas to meet the government’s carbon neutral goals and boost the hydrogen economy. The United States allows us to preemptively secure competitive and reliable clean hydrogen and ammonia supplies with established clean fuel support policies” said Kang Se-hoon, Head of the Overseas New Business Division at Korea Western Power.
Cautionary Note Concerning Forward-Looking Statements: Disclosures in this news release contain forward-looking statements. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include KOWEPO's expectation to convert the jointly developed green hydrogen to clean ammonia using Tallgrass infrastructure and the expected benefits from the use of such clean ammonia; and KOWEPO’s plans to expand domestic Korean renewable energy capacity and the additional metrics resulting from such expansion. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Tallgrass, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, and other important factors that could cause actual results to differ materially from those projected, including those set forth in reports and financial statements made available by Tallgrass. Any forward-looking statement applies only as of the date on which such statement is made, and Tallgrass does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.