SK ecoplant invests in green hydrogen project in Canada: Project Nujio'qonik

SK ecoplant, the energy and environment arm of South Korea's second-largest conglomerate, SK Group, has signed an investment agreement with World Energy GH2 to harness wind energy into green hydrogen for its Project Nujio'qonik in Canada.

SK ecoplant will initially invest $50 million in Project Nujio'qonik, which is based on acquiring a 20% stake in the first phase of the project. This investment marks SK ecoplant's first investment in a wind-to-green hydrogen project globally.

"Newfoundland and Labrador is positioned to launch this industry in Canada and to be amongst the very few first-mover commercial producers of scale worldwide," said Kyung-il Park, CEO, SK ecoplant.

"Our investment in this project is a step toward producing the first green hydrogen and ammonia in 2025 and taking a leadership position in the fight against climate change."

With the latest partnership, SK Ecoplant has become the first Korean company to participate in an intercontinental green hydrogen commercialization project.

The company has already completed a green hydrogen value chain that includes renewable energy sources such as wind power and electrolysis. SK ecoplant will bring in its expertise in green hydrogen and engineering excellence to the partnership. It currently boasts ongoing development of 2.6 GW offshore wind power projects. Its subsidiary, SK oceanplant, specializes in substructures for offshore wind power installation.

"The investment in Project Nujio'qonik is a step toward launching the international green hydrogen industry, Park added.

Project Nujio'qonik (meaning "where the sand blows") will be located in Stephensville town in Newfoundland and Labrador. The place offers abundant wind energy, access to fresh water, and a deep seaport in close proximity to Europe. The project will come up at an industrial site that served as a former paper mill using the same water supply and electricity grid connection.

"This is an international company that can do business anywhere in the world," said Sean Leet, Managing Director and CEO, World Energy GH2.

"Not only did they choose Canada, but they also chose our home, Newfoundland and Labrador, and they chose Project Nujio'qonik. SK ecoplant recognizes the benefits, advancement, and sophistication of this project, and we look forward to a prosperous partnership."

According to World Energy GH2, the project with a budget of $10-12 billion will be Canada's first commercial green hydrogen plant and the first-of-its-kind project in North America.

The Minister of Innovation, Science and Industry, Government of Canada, François-Philippe Champagne also attended the signing ceremony which took place in Seoul on Wednesday.