South Korean YPP to Invest $3.1B in Green Hydrogen Production in Kazakhstan

South Korean energy company YPP will invest up to USD 3.1 billion (EUR 2.67 billion) in a major green hydrogen production project in Kazakhstan, supported by up to 2 GW of renewable power generation.

YPP will realise the project under a framework agreement with government investment agency Kazakh Invest. When announcing the pact, the Kazakh firm said it will pave the way for the conclusion of an investment agreement and the formation of partnerships with relevant organisations, including potential off-takers, The Caspian Post reports citing foreign media.

The South Korean company’s proposal envisages the installation of electrolysers to produce up to 75,000 tonnes of green hydrogen annually, some of which will be converted into green ammonia. Part of the output will be used to meet domestic needs, but most will be exported to foreign markets. South Korean construction company Samsung C&T Corporation is seen as one of the potential off-takers.

The production process will be powered by electricity from wind and solar photovoltaic (PV) parks.

The project comes with plans for developing local infrastructure, energy storage systems, water supply and logistics facilities. The total cost of the development will depend on the selected model and location conditions.

According to Azamat Kozhanov, deputy chairman of the management board of Kazakh Invest, the project will support Kazakhstan’s strategic priorities and plans for developing the hydrogen energy sector.