The new facility is planned to produce hydrogen by converting methane through a chemical reaction under high-temperature steam for naphtha cracking, the company said in a statement.

Naphtha cracking is a process to produce ethylene, propylene, and butadiene, which are widely used in the petrochemical industry. Typically, methane is used as a fuel in the process.

H2 View understands the company plans to capture carbon dioxide produced from the hydrogen generation to supply Taekyung Chemical, as part of what LG Chem calls its ‘CO2 circulation system’.

LG Chem have said the use of hydrogen from the new plant could reduce carbon emissions by 140,000 tonnes annually, with the company considering further hydrogen production plants in the future.

The company’s hydrogen production plans come as part of its strategy to increase renewable energy usage by 70% by 2025.

Noh Kug-lae, Head of Petrochemical Business at LG Chem, commented, “The establishment of our hydrogen plant and CO2 circulation system is an effort to create a sustainable future for our petrochemical business by achieving carbon neutrality. Hydrogen will allow us to convert our petrochemical pyrolysis to a more sustainable low-carbon process.”