South Korea’s two major business groups Samsung and Hyundai will collaborate with Global Green Growth Institute (GGGI) on a USD 1.2bn clean energy project in Indonesia to produce green hydrogen.
Green hydrogen to be harvested from a geothermal energy source in the Sarulla Block, North Sumatra, Indonesia will be supplied to the Sei Mangkei Industrial Zone nearby as an eco-friendly fuel for steel and cement-making factories that heavily depend on fossil fuels.
The project led by GGGI, a treaty-based inter-governmental international development organization, can benefit all the countries involved in geothermal power sourcing, technology sharing, and green ammonia import in terms of carbon emission reduction.
To implement this plan, Samsung Engineering under Samsung Group will be responsible for design and a validity study, while Hyundai Glovis under Hyundai Motor Group for green ammonia shipping. State-run Korea Gas Corporation will launch a green ammonia business based on the supply from Indonesia.
GGGI, which supports developing companies to achieve sustainable economic growth, has conducted a business validity study of the project since November last year and plans to complete it in the second half of this year. Korean and Australian financial companies are reportedly inquiring about the possibility of their participation in this project.