Hydrogen Canada Corp. ("HCC") is pleased to announce the signing of a
Memorandum of Understanding (“MOU”) between Korea Southern Power Co., Ltd. (“KOSPO”) and HCC
(collectively, the “Parties”). The intent of the MOU is for all of the Parties to work cooperatively “to jointly develop
a clean ammonia production and export business in Canada”.
Under the MOU, the Parties have agreed to cooperate in the development of HCC’s clean hydrogen/ammonia
project in Alberta, Canada. HCC is seeking to build and operate a 1 million tonne per annum clean ammonia facility
in the Alberta Industrial Heartland and support the development of the export facilities required to transfer the
product to markets in Asia. HCC has completed Pre-FEED and is planning on entering FEED in early 2025. The
Parties have agreed to support the ongoing development of HCC’s project and review financial and commercial
support.
The Government of South Korea has committed to reducing emissions from its power sector by 44% by 2030 and
achieving net-zero by 2050. To support those efforts, it has created the Clean Hydrogen Power Generation Market
which will be supporting the long-term supply of clean hydrogen and ammonia to the country. KOSPO, the largest
power generation company in South Korea with 12GW of generation assets representing approx. 10% of the
national power grid, is seeking to reduce its overall emission profile by co-firing hydrogen and ammonia. South
Korean demand for hydrogen and ammonia, under the government's clean power mandates, could be as high as
16 million tonnes per annum by 2038.
"This project represents an opportunity to use cost-advantaged, low-carbon natural gas in Alberta to support the
decarbonization of South Korea and other Asian countries and to provide a level of energy security to those
countries as well," said Brendan O’Connell, VP Business Development. "Access to cost-effective carbon
sequestration also creates a material strategic advantage for this project in Alberta’s Industrial Heartland. Our
partner, E1 Corp., is a major trader of LPG in Asia, including significant volumes of Canadian LPG and it recognizes
the marketability of low-cost, reliable energy products sourced from western Canada".
