BHI has signed a significant memorandum of understanding (MOU) with the Korea Institute of Energy Research (KIER) to localize and commercialize next-generation energy technologies.
This partnership is fundamentally driven by clear government policy. The 11th Basic Plan for Electricity Supply and Demand has laid out a roadmap to significantly increase the share of hydrogen and ammonia in power generation by 2038. This created a strong, long-term demand signal. However, the first auction under the Clean Hydrogen Portfolio Standard (CHPS) in 2024 was underwhelming, largely due to high costs and risks. This highlighted a critical need for domestic, cost-competitive solutions, which the BHI-KIER partnership directly aims to provide.
Adding to this domestic push is pressure from regional competition. Japan's JERA, a major energy company, has already completed a successful demonstration of 20% ammonia co-firing at its Hekinan power plant and is moving toward commercial operation. This progress puts pressure on Korean companies to accelerate their own efforts. Without a robust domestic supply chain—a 'Korean stack' for everything from catalysts to equipment—the country could become dependent on foreign technology and fuel, undermining the goal of energy independence. This MOU is a strategic move to build that very supply chain.
This collaboration didn't emerge from a vacuum; it's built on a foundation of proven technological milestones. First, KIER has developed a high-performance catalyst that triples the efficiency of ammonia cracking, a key process for producing hydrogen from ammonia. Second, BHI has already successfully demonstrated its own 2MW-class alkaline electrolyzer, proving its capability in manufacturing core green hydrogen production equipment. These prior successes provide tangible credibility and reduce the risk associated with the MOU, making it a practical bridge from research to mass production.
Ultimately, this MOU is more than just a formal agreement. It strategically combines KIER's advanced research with BHI's proven design and manufacturing expertise. This synergy is designed to create a complete value chain—from technology development and manufacturing to demonstration and commercialization. By doing so, it tackles the core challenges of cost, supply chain stability, and energy security, positioning Korea to become a leader in the future of clean energy.
- CHPS (Clean Hydrogen Portfolio Standard): A mandatory system requiring power producers to use a certain percentage of electricity generated from clean hydrogen.
- Ammonia Cracking: A chemical process that breaks down ammonia (NH₃) into nitrogen (N₂) and hydrogen (H₂). The hydrogen can then be used in fuel cells or turbines to generate electricity.
- Carnot Battery: A type of long-duration energy storage system that converts electricity into heat, stores it in materials like molten salt or rocks, and then converts the heat back into electricity when needed.