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Korea Zinc shares the brand values and future vision of the company

[H2 MEET 2023] Korea Zinc’s Green Hydrogen Future

2023-10-17

Korea Zinc’s Green
Hydrogen Future

Korea Zinc participated in ‘H2 MEET 2023’, Korea’s largest hydrogen industry exhibition held at KINTEX in Ilsan from September 13th to 15th.

Hydrogen is gaining global attention as the next-generation energy source, and various countries are actively pursuing the establishment of supply networks. In 2020, the EU announced its ‘The EU Hydrogen Strategy’, with a goal to produce 10 million tons of green hydrogen by 2030. Korea also unveiled its policy plan to foster the hydrogen industry last year, demonstrating its commitment to nurturing the domestic hydrogen industry to become a global leader.

‘H2 MEET’, which provided a comprehensive overview of the status of global hydrogen technology, boasted its largest participation scale ever with a total of 303 companies and institutions, including 88 foreign companies. Among them, we will explore the vibrant booth of Korea Zinc, where we can see the competitiveness of the hydrogen business!

The Korea Zinc exhibition hall was adorned with lush greenery and trees, giving an environmentally friendly ambiance, in particular, what captivated the attention of the visitors was the ‘Diorama’ located in the center. It visually emphasized the entire spectrum of projects, ranging from renewable energy production to the green hydrogen value chain. Korea Zinc’s hydrogen roadmap was presented in a way that made it easier for visitors to comprehend, with miniature representations of the actual processes involved in hydrogen production, storage, transportation, and utilization, drawing high attention throughout the exhibition period.

Through this exhibition booth, we detailed our history, starting with the construction and operation of Australia’s largest solar power plant in 2018 by our Australian subsidiary, SMC Smelter, and progressing to the establishment of Ark Energy Corporation, marking our substantial entry into the renewable energy sector.

From the global No.1 smelting company to an eco-friendly energy and materials company

NO. 1

No.1 Zinc·Lead in
global market
share

50 Years

Sustainable
Management

RE 100

First smelting
company
to join
RE100

Korea Zinc is widely recognized as a world-leading non-ferrous metal smelting company. Due to the nature of the smelting business, electricity demand is high and concerns over carbon emissions are growing, so we have been contemplating a transition to eco-friendly energy sources. As a result, we have taken significant steps towards decarbonization, including becoming the first company in the metal industry to join RE100. Moreover, one of the key advantages of the hydrogen produced by Korea Zinc is its compliance with the government’s clean hydrogen certification standards, making it ‘Grade 1 clean hydrogen’.

Sustainable Metal Production

The World’s Most Competitive

Green hydrogen
& Green ammonia

1MW

Electrolyzer

P.A. 140 ton

Green Hydrogen

2023

2,000MW

Electrolyzer

P.A. 280,000 ton

Green Hydrogen

P.A. 1.6 million tons

Green ammonia
supply to Korea

2030

3,500MW

Electrolyzer

P.A. 500,000 ton

Green Hydrogen

2050

Green Metal Production Process

  • Production and
    Use of Renewable
    Energy

  • Production
    and Use of
    Green Hydrogen

  • Green Ammonia
    Synthesis and
    Export

  • Green Ammonia
    Cracking and
    Production of
    Green Hydrogen

  • Prodution of
    Green Metal

So, what will the sustainable future of Korea Zinc look like in 50 years? Korea Zinc has been actively pursuing renewable energy projects to address the dual challenges of increasingly stringent environmental regulations and enhancing business competitiveness. Furthermore, the company has established a vision to achieve carbon neutrality by 2050 through the production of ‘green metal’ using green hydrogen produced from renewable energy sources.

To achieve this vision, Korea Zinc has developed both short-term and long-term strategies and is currently executing various hydrogen projects. In the short term, there are plans to conduct small-scale demonstration projects domestically and internationally that encompass the production nd utilization of green hydrogen. Ark Energy is currently undertaking the SunHQ Green Hydrogen Demonstration Project to convert diesel trucks operated by Townsville Logistics, another logistics subsidiary in Australia, into hydrogen trucks, and build water electrolyzer (1MW PEM) and hydrogen refueling station facilities for the production of green hydrogen.

In the long term, we aim to enhance domestic energy security and contribute to the activation of the hydrogen economy by importing green hydrogen and green ammonia produced in Australia to Korea. Starting in the first half of next year, we will be actively engaged in green hydrogen production in Australia, marking a significant milestone as the ‘first overseas green hydrogen production by a domestic (Korean) company’. Korea Zinc, in collaboration with Hanwha Impact and SK Gas, has formed the Korea-Australia Hydrogen (Han-Ho H2) Consortium. Together, we are considering the establishment of a supply network to export over one million tons of green ammonia annually from Australia to Korea by 2030.

During the opening ceremony on the first day, Nam-hoon Kang, Chairman of the H2 MEET Organizing Committee and President of the Korea Automotive Mobility Industry Association, stated, “This exhibition aims to showcase the latest technological trends across the entire hydrogen ecosystem and provide a platform to witness the society’s transition towards an eco-friendly paradigm. Through this event, we will extend our utmost support to facilitate global exchange and cooperation for the advancement and leap forward of the hydrogen industry.”

As part of the ‘KZ Green EVENT’ initiative, Korea Zinc conducted the ‘Challenge! KZ Well-Informed Quiz’ at one corner of their booth. Visitors enthusiastically participated in solving quizzes related to Korea Zinc’s ongoing hydrogen projects, and those who answered correctly were rewarded with eco-friendly plant-growing kits. This engagement helped enhance the overall immersion in the exhibition.

Mini Interview

With 50 years of experience and expertise accumulated
in the non-ferrous smelting business, we are poised to evolve
into a leading force in the green energy and materials industry,
leveraging our capabilities as green energy drivers.

Jaekil Ryu
Head of Team
Strategies & Planning Team 2

Q. What is the background for participating in ‘H2 MEET 2023’?
A. Beyond achieving the status of being the global leader in non-ferrous metal smelting over the past 50 years, Korea Zinc is currently driving a ‘Troika Drive’ to expand its business scope into three eco-friendly sectors for the next 50 years: renewable energy /hydrogen, secondary battery materials, and resource circulation. Among these, the renewable energy and hydrogen sector is a focal point. Recognizing the significance of H2 MEET as Korea’s largest hydrogen-related exhibition, Korea Zinc chose to participate for the second consecutive year as it provides an opportune platform to showcase its endeavors in the field of renewable energy and hydrogen.

Korea Zinc firmly believes that renewable energy and hydrogen represent the optimal means to be practically applied to its business operations while aligning with the contemporary call of ESG. With this belief as a foundation, Korea Zinc is exerting its utmost efforts to ensure that when one envisions a green energy company in the future, Korea Zinc is a name that naturally comes to mind.

Hyunpyo Son
Manager
Strategies & Planning Team 2

Q. What is the main concept in this exhibition?
A. Korea Zinc has presented its roadmap for the hydrogen business, dividing it into four distinct zones to facilitate a comprehensive understanding of the project’s progression. Additionally, the diorama has been strategically placed in the center to visually emphasize the value chain of the hydrogen business as envisioned by Korea Zinc.

The entire booth has been designed in line with our overarching concept of ‘GREEN ZINC,’ creating an ambiance reminiscent of European gardens to ensure that visitors feel comfortable. Team Leader Jaekil Ryu suggested an excellent idea to represent essential elements like solar and wind, integral to renewable energy and hydrogen, by adopting a design resembling a park or garden. This innovative concept has garnered widespread praise, making it a highly regarded choice.

Jaekil Ryu
Head of Team
Strategies & Planning Team 2

Q. Please introduce about the progress of Korea Zinc’s hydrogen business.
A. Korea Zinc is planning to establish a complete value chain that encompasses the entire process from green hydrogen production to storage, transportation, and export. To achieve this goal, the company has formulated both short-term and long-term strategies and is currently executing various hydrogen projects.

Korea Zinc directly built and has been operating a 125MW-scale solar power plant, which is the largest in Australia, at its Australian subsidiary, SMC Smelter, since 2018. As a result, SMC Smelter receives 25% of its annual power demand from the solar power plant. Additionally, it has undertaken investments in the 923MW-scale MacIntyre Wind Farm project, as well as the development of a 9GW-scale project through Ark Energy to produce green hydrogen from renewable energy sources. Part of the produced green hydrogen will be used locally in Australia, while another part will be combined with ammonia for export.

“Furthermore, domestically, Korea Zinc is actively participating in the Ministry of Trade, Industry, and Energy and government-funded project for the commercialization and practical demonstration of hydrogen-powered forklifts. As part of this initiative, a total of 45 hydrogen-powered forklifts are being operated, and hydrogen refueling stations have been established to facilitate the acquisition of operational data for the transition to hydrogen mobility.

Hyunpyo Son
Manager
Strategies & Planning Team 2

Q. Please tell us about Korea Zinc’s goals and future challenges in achieving 100% renewable energy by 2050.
A. Due to the nature of the smelting industry, Korea Zinc has a significant reliance on electricity, leading to high electricity costs. To enhance sustainability and address this concern, we have been exploring solutions for reducing electricity expenses and transitioning to environmentally friendly energy sources. Accordingly, we will strive to capture various opportunities that can help our business in the future, along with the ongoing renewable energy and hydrogen projects.

Preparing for the strengthened global environmental regulations in the future and enhancing energy security through the preemptive development of renewable energy and green hydrogen businesses are critical for securing future competitiveness.
To achieve this, we are committed to diligently executing our ongoing projects and successfully completing them. Simultaneously, we are focusing on research and assessment of essential new technologies, such as hydrogen reduction refining technology, which is vital for our operations. We are also keeping a close eye on domestic and global policies and business opportunities related to renewable energy and hydrogen. Korea Zinc will spare no effort until the day we achieve RE100 and produce Green Zinc.
Korea Zinc’s new growth engine, TROIKA DRIVE

Korea Zinc, which is taking the lead in eco-friendly smelting with constant innovation and differentiated technology, will accelerate sustainable management for the next 50 years with the ‘Three major new businesses for Troika Drive’ centered on the future growth engine △ renewable energy and green hydrogen △ secondary battery materials △ resource circulation through recycling.

Renewable Energy and
Green Hydrogen Business

Investing in renewable energy business
and leading in green hydrogen business

Secondary Battery
Materials Business

Establising the secondary battery
materials value
chain from recycling
e-wate and producing precursor

Resource
Recycling Business

Establishing an eco-friendly circulation
system via recycling EAFD and e-waste

“Korea Zinc has treaded only one path in the barren land of resource materials business – non-ferrous metal smelting.
With constant innovation and distinctive technological capabilities, it has grown into a top-tier company in the global non-ferrous metal market.
Now, Korea Zinc is embarking on a new challenge.

An innovative company that creates future value for the eco-friendly and circular economy.
Korea Zinc is committed to pioneering a sustainable future through continuous change and innovation, transcending boundaries.”