South Korean companies OCI and POSCO Chemical have signed a joint agreement to produce electronic-grade and industrial hydrogen peroxide using a byproduct of steelmaking processes
OCI President & CEO Kim Teak-joung and POSCO Chemical, CEO Min Gyeong-jun
South Korean companies OCI and POSCO Chemical have signed a joint agreement to produce electronic-grade and industrial hydrogen peroxide using coke oven gas (COG), a byproduct of steelmaking processes.
The two companies plan to build a hydrogen peroxide plant on 42,00 sqm land in OCI's Gwangyang Plant with a total annual production capacity of 50,000 tonnes of hydrogen peroxide, targeting commercial production starting 2022.
The key ingredient in hydrogen peroxide, COG, will be supplied from the Gwangyang steel plant of POSCO. COG is obtained by heating coal in the oven during the steel-making process. One of the chemical components of COG is hydrogen (H2), which can be extracted and processed to produce hydrogen peroxide.
The two companies described their objective for establishing JV as: “To seize opportunities as demands increase for high-purity hydrogen peroxide while major semiconductor companies expand their production facilities, we came to an agreement to establish a joint venture capable of producing a stable supply of source materials for the domestic semiconductor industry.”
With the establishment of JV between the two companies, OCI will be able to secure high quality source materials in a more stable and cost-effective means, and advance both the level of competitiveness and status in the market for the hydrogen peroxide business currently in operation.
Hydrogen peroxide (H202) is a well-known oxidiser commonly used as a disinfectant or bleach. Due to its environmentally friendly properties, it is widely used in soil remediation and wastewater treatment, and also in the etching and washing processes in advanced fields such as semiconductors and displays.
The joint venture is scheduled to go into operation in Q2 of 2020, with 49% of its shares owned by OCI and 51% by POSCO Chemical respectively.