GS Engineering and Construction said Monday it has signed a memorandum of understanding with California-based SG H2 to supply modules that will be used to construct green hydrogen plants.

The renewables project, led by SG H2 Energy’s special purpose company SG H2 Lancaster LLC, is expected to produce 11 tons of green hydrogen in Lancaster, California, an amount that can fuel 1,700 mid-size hydrogen-powered cars.

The deal will mark the first time for a Korean firm to export hydrogen plant modules that accelerate project timelines at lower costs. GS E&C, experienced in making modules for essential oil and gas plants, is translating its knowhow to building hydrogen facilities.

With the California project as its foothold, GS E&C said it is looking to expand its partnership with SG H2, whose hydrogen plant construction stretches across North America, Europe, and Asia. The firm also carries out a clean energy project using plasma technology in Korea’s port city of Ulsan.

“We hope for this project to work as a gateway into securing more partnerships with leaders in the promising green hydrogen plant market,” said Huh Yun-hong, GS E&C’s new business division chief. “We will continue to pursue environmental and social values as a frontrunner in ESG management.”

by Ahn Ju-hee (dianahn@heraldcorp.com)