Construction of South Korea’s first liquid hydrogen plant kicked off on Monday, textile and chemical conglomerate Hyosung Group said.

The 300 billion-won ($264.6 million) Ulsan plant will be built by Linde Hydrogen, a joint venture formed in February by Hyosung Group’s machinery affiliate Hyosung Heavy Industries and German chemical firm Linde.

Set for commercial operation in May 2023, the envisioned plant would be the world’s single largest liquid hydrogen facility with an annual production capacity of 13,000 metric tons -- enough to power 100,000 vehicles per year.

“The energy revolution will change the future of mankind and hydrogen energy is at its core. Through continued investments, Hyosung will lead the paradigm shift to hydrogen,” Hyosung Group Chairman Cho Hyun-joon said during the groundbreaking ceremony on Monday.

In addition, Hyosung Group will make an independent investment of 1 trillion won throughout the next five years to increase its liquid hydrogen production capacity to 39,000 tons. It will also establish large-scale liquid hydrogen charging stations at around 30 locations across the country.

Through the partnership with Linde, Hyosung will localize liquid hydrogen charging technologies and equipment by 2024. It is also working to develop blue and green hydrogen extraction technologies and establish a green hydrogen production facility by 2025.

“Hyosung Group’s ultimate goal is to curb Korea’s carbon emissions by 10 percent,” a group official said.

Though hydrogen itself is colorless, the industry uses color descriptors to differentiate its source and methods of production. Blue hydrogen extracts hydrogen from natural gas and captures carbon emitted from the process. Green hydrogen breaks water into hydrogen and oxygen with electricity generated by renewable energy.

By Kim Byung-wook (kbw@heraldcorp.com)