Eximbank signs MOU with GS Energy on low-carbon energy business

Export-Import Bank of Korea (Eximbank) Chairman and President Yoon Hee-sung, left, poses with GS Energy CEO Huh Yong-soo after signing an MOU for the low-carbon energy business at the bank's headquarters in Seoul, Monday. Courtesy of Eximbank

By Yoon Ja-young

The Export-Import Bank of Korea (Eximbank) will be providing GS Energy with 1 trillion won ($720 billion) in financing for the implementation of carbon-neutral policies as well as for laying the groundwork for energy independence.

The bank, operating under the wing of the Ministry of Economy and Finance, announced on Tuesday that it had signed an MOU with the energy solution company of GS Group, on the previous day, in which it agreed to provide financing for projects related to energy security and the transition to carbon-free energy.

Through the MOU, the Eximbank and GS Energy plan to secure the foundation for the low-carbon industry and enhance the environmental, social and corporate governance (ESG) capabilities of Korean businesses. The measure comes as Korea is facing a transition in its energy paradigm, as seen in the carbon-neutral policies adopted by the government.

Based on the MOU, the Eximbank will be providing 1 trillion won in financing by 2025 for the sharing of information on low-carbon energy businesses, participation in such projects both within the country and abroad, as well as establishment of infrastructure for the introduction and supply of low-carbon energy in the country.

Currently, GS Energy is pushing ahead with diverse projects, including producing blue ammonia and building an LNG combined-cycle power plant as well as acquiring LNG from overseas. Blue ammonia refers to ammonia in which the carbon dioxide generated during conventional production is captured and stored. GS Energy is currently planning to produce and introduce blue ammonia jointly with the Abu Dhabi National Oil Company, a leading oil company in the Middle East.

“Through the MOU, we hope to greatly contribute to strengthening the investment capability of local businesses in low-carbon energy businesses, as well as the country's competitiveness in securing resources,” Eximbank Chairman and President Yoon Hee-sung said.

“It will greatly help us in reorganizing our business portfolio to focus on low-carbon energy as well as implementing management strategies related to ESG criteria,” GS Energy CEO Huh Yong-soo said.

Starting from the MOU with GS Energy, Eximbank plans to find ways to contribute more actively to the government's implementation of carbon-neutral policies and establishment of energy security.