[Relay Exploration - Finding Hydrogen Specialist Companies] ⑬ Approtium Co., Ltd
Extensive experience in large-scale SMR operation... Now focusing on clean hydrogen business
Supply of hydrogen for mixed-use in ammonia-separated hydrogen LNG power plants
Equipped with capital, organization, and technical capabilities... Ready for proactive investments in hydrogen
Approtium's hydrogen plant, operating a large-scale NG extraction facility.
[Gas Newspaper - Reporter Hansangyeol] Approtium, well-known as the largest hydrogen producer in Korea, is leading the way in the hydrogen society through continuous innovation.
In December 2021, a private equity fund managed by Macquarie Asset Management acquired Doekyang Co., Ltd., and in September 2022, the company changed its name to Approtium Co., Ltd., underlining high expectations for its new trajectory.
Approtium, led by James Kim, has been supplying high-purity hydrogen (H₂) produced through advanced purification facilities for by-product hydrogen from petrochemical processes. Over the past decade, the company has also built large-scale Steam Methane Reformers (SMR) to produce approximately 100,000 tons of hydrogen annually, catering to industries like refining, petrochemicals, and semiconductors, driven by the increasing demand for hydrogen.
Notably, Approtium supplies hydrogen through a distribution network of approximately 60 kilometers of pipelines centered around the Ulsan Petrochemical Complex and operates more than 250 tube trailers, establishing a nationwide supply network.
Moreover, the company has garnered recognition for its low-carbon hydrogen production by capturing, purifying, and liquefying the carbon dioxide (CO₂) generated during the large-scale SMR hydrogen production process. This CO₂ is supplied to industries such as semiconductors, shipbuilding, and food and beverages. Approtium also produces dry ice from liquid carbon dioxide, supplying it to various sectors, including freezing and fresh food, thereby taking a step closer to low-carbon hydrogen production.
Leveraging its extensive experience in large-scale SMR operation, the company is now shifting its focus to clean hydrogen businesses, aligning with global energy trends such as carbon neutrality and addressing climate crises in addition to the hydrogen economy promoted by the South Korean government.
Incorporating expertise in gas turbine development and more.
Approtium's safety managers conducting safety patrol on hydrogen plants.
Last December, Approtium, selected as a hydrogen specialist company by the Ministry of Trade, Industry, and Energy, is actively engaged in businesses related to hydrogen energy, including clean hydrogen and clean ammonia.
James Kim stated, "Our extensive experience in operating large-scale SMR will be instrumental in producing clean hydrogen," emphasizing that the company is well-equipped in terms of capital, organization, and technical capabilities, enabling proactive investments in the hydrogen energy sector.
Having signed an MOU with POSCO Holdings in September last year for cooperation in clean hydrogen business, the company plans to support hydrogen production facilities' operation and management techniques and capture, liquefy, and sell CO₂.
Approtium, with James Kim, who possesses rich experience in fields related to gas turbines and thermal power generation, is also focusing on fuel cell power generation business, which is starting to yield results.
In October last year, agreed with the U.S. energy company Tallgrass to supply 800,000 tons of clean ammonia annually. The imported clean ammonia is used domestically in a direct mixing process with coal-fired power plants or is disassembled to supply separated hydrogen to LNG power plants.
Additionally, in December, Approtium participated in a project to establish a large-scale hydrogen storage facility pier in Dangjin, Chungcheongnam-do. After the pier construction is completed, it plans to install four ammonia storage tanks with a capacity of 40,000 tons each and build facilities for the docking of 50,000-ton and 30,000-ton liquid cargo ships. Once the pier and storage facilities are complete, the company will import 2 million tons of ammonia annually from overseas and supply it for coal and ammonia co-firing (coal + ammonia), fuel cell power generation, and vehicle applications.
In February this year, Approtium signed an MOU with Hyphen, a Namibian clean energy production company, to receive 250,000 tons of green ammonia annually starting in 2027. Through the import of green ammonia, the plan is to establish a clean energy supply base in Korea and supply separated hydrogen to LNG power plants through ammonia cracking, where ammonia is separated into hydrogen and nitrogen using heat and a catalyst.
In addition to the hydrogen business, Approtium is also involved in the carbonation business and draws attention by exporting CO₂, which is designated as a greenhouse gas. In November last year, Approtium signed a memorandum of understanding with Marubeni in Japan, a comprehensive trading company, to export industrial CO₂. Approtium produces 450 tons of CO₂ per day as a byproduct in Busan and exports a portion of it to Japan after liquefaction.
Approtium's semiconductor-dedicated CO₂storage tanks.
Playing an active role in the Hydrogen Demonstration City Project
As a pivotal player in supplying hydrogen to Ulsan, South Korea's first hydrogen demonstration city, Approtium stands out by ensuring a smooth hydrogen supply. The company actively participates in the Hydrogen Demonstration City Project and showcases its capabilities.
Among the demonstration projects, the company's role is particularly prominent in the Ulsan North District, including Yangjeong-dong and the Taehwagang Station area, where a total of 42 billion won, including government funding, is being invested to carry out three projects. Approtium supplies hydrogen through pipelines to the hydrogen stations to be installed at the Taehwagang Station area and the Hyundai Motor Ulsan plant.
Moreover, Approtium will also supply hydrogen to hydrogen apartments in the Yuldong district of Ulsan North, utilizing hydrogen supplied through a dedicated pipeline stretching about 12.5 kilometers from the Ulsan Petrochemical Complex. This hydrogen will be used to generate 1.3 MW of electricity per hour, supplying it entirely to the hydrogen apartments. This project, expected to be completed in the second half of this year, currently involves the construction of the core facility, a hydrogen fuel cell power generation plant, and is likely to become the world's first carbon-neutral apartment complex.
Going beyond industrial hydrogen supply, Approtium expressed a strong commitment to the government's hydrogen economy initiative, aiming to expand its supply to various sectors, including transportation, such as automobiles, high-speed trains, ships, and aviation, as well as large-scale hydrogen power generation. The company is poised to swiftly transition to blue hydrogen and green hydrogen in alignment with the government's push for a hydrogen economy, focusing on global carbon neutrality.
[Interview] Approtium CEO James Kim
“Profit is important, but Net-Zero investments are essential”
Establishing a hub for hydrogen supply with a focus on safety, reliability, and competitiveness.
The government should commit to not discontinuing its support for the hydrogen society.
"While generating revenue and profits is important for businesses in the field of hydrogen and other renewable energy sources, it is crucial to prioritize investments towards achieving net-zero in alignment with global trends like carbon neutrality. Our company is rigorously following the shareholder's self-imposed plan to achieve carbon neutrality by 2040. It's essential that we don't just stick to theory but continually find practical solutions for how to address net-zero and related business initiatives."
Approtium (CEO James Kim) places a high value on conducting business as a response to climate change and has swiftly transitioned towards businesses that contribute to addressing the climate crisis, emphasizing its commitment to ESG management and investment in environmental and safety sectors, even if it involves a certain level of cost.
"Our company has a diverse team of experts with experiences in various fields, including gas turbine development, which forms the basis for our participation in various hydrogen-related businesses. We are also interested in investing in plans aimed at revitalizing Incheon as an energy cluster, which is part of POSCO Holdings' scheme to activate the Incheon area with multiple thermal power plants."
Leveraging the experience of operating large-scale SMR, CEO Kim, who signed an MOU to promote the clean hydrogen business in the Incheon area, intends to support hydrogen production facility operation and management techniques, along with capturing and selling carbon dioxide (CO₂). Approtium aims to function as an energy hub, supplying energy to multiple locations from a single source.
"Our company values three essential elements: safety, reliability, and competitiveness. We provide our clients with the best services, considering these elements as our top priorities. With the application of our diverse experiences in hydrogen production and distribution, we aim to contribute to the realization of the hydrogen economy in South Korea."
CEO Kim, who oversaw gas turbine development at companies such as GE and Doosan Heavy Industries, and who was involved in business development in the energy sector at Macquarie Asset Management, is recognized for his capabilities in the business field.
"For businesses in the hydrogen economy and carbon neutrality sectors, it's crucial to continually enhance their feasibility. Industries like extracting hydrogen from natural gas and managing the associated CO₂ pose multiple risks. However, the industry's direction should be unwavering, even if it requires substantial investments, in response to the climate crisis."
Businesses in the energy sector should prioritize environmental concerns and boldly invest before assessing profitability, according to CEO Kim. He emphasizes that hydrogen fuel cell power generation should be pursued in parallel with CCUS to gain recognition.
"The government must have a strong belief in realizing the hydrogen society. They shouldn't discontinue their support in terms of legislation, taxation, and more. Initial doubts were raised about the feasibility of solar and wind power generation as well. Continuous trial and error will lead to technological optimization and open up new possibilities."
CEO Kim emphasizes the importance of collaboration between companies and the government in the field of hydrogen fuel cell power generation and believes that with joint efforts, reaching the goals is achievable. He encourages a persistent approach without giving up.
"Our company plays a significant role in the Ulsan Hydrogen Demonstration City. We supply hydrogen through pipelines to two hydrogen stations and even provide hydrogen to the upcoming hydrogen apartments. We act as a hydrogen hub."
CEO Kim expresses his deep appreciation for the role his company will play in supplying hydrogen to the Hydrogen Town, which will be completed in August. He plans to install an additional two CO₂ capture devices at this location, tripling the CO₂ capture capacity and recycling the CO₂, significantly contributing to carbon neutrality. His face lights up with a bright smile as he discusses these developments.
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