Korea Hydro and Nuclear Power Co (KHNP), one of Korea’s biggest energy companies, the Korean-Australian green hydrogen specialist Elecseed, Hallett and South Australian Energy and Mining Minister Tom Koutsantonis signed an agreement in support of a green hydrogen project to support Hallett Group’s $125 million green cement transformation project.

In parallel, KHNP, Elecseed and Hallett, the largest integrated supplier of building and construction materials in South Australia, signed a statement of cooperation that aims to reduce Australia’s total carbon dioxide emissions by 1 per cent annually through the generation and use of green hydrogen. 

Cement manufacturing accounts for 8 per cent of global carbon emissions a year, mostly through the heating of limestone to create the main ingredient, called clinker. Australia consumes about 12 million tonnes of cementitious products annually, with round half of this imported.

Elecseed-KHNP will build a 5MW solar farm, battery energy storage system and 5MW hydrogen electrolysis plant at Hallett’s Port Augusta facility to power the heating and drying of up to one million tonnes a year of lower-carbon substitutes for clinker. These ingredients include historic waste flyash from the former Port Augusta power station and materials from the Nyrstar Port Pirie multimetals smelter. 

This decarbonised cement will be used locally in construction, roads and mining and could create a new export industry for South Australia based at a new distribution facility that Hallett is building at Port Adelaide. The parties are also investigating the potential for hydrogen to decarbonise Hallett’s truck fleet. 

The Statement of Cooperation sets out the commitment of the South Australian Government and industry partners to work together to accelerate the development of South Australia’s hydrogen economy and fast track the global transition to clean energy. The statement focuses on deepening trade relationships and supply capabilities, growing a globally competitive hydrogen export sector, enabling the industries of the future and developing near-term domestic markets. 

The multimillion-dollar MoU brings together KHNP, Elecseed and Hallett to produce green hydrogen on site. KHNP and Elecseed will manage development of the project and undertake an engineering study to conclude technical details ahead of construction, and whilst contribute hydrogen expertise. The Korean consortium will fund the development, which will lead to a long-term energy supply agreement with Hallett.

Elecseed Pty Ltd is a privately owned Korean-Australian green hydrogen developer, whose investment partner in South Australia, KHNP, is one of Korea’s biggest energy providers and wholly owned by the Korea Government power company KEPCO.