South Korea's LG Chem Ltd said that it planned to build a hydrogen plant in South Korea to produce 50,000 tonnes of hydrogen annually by the second quarter of 2024, in a bid to reduce carbon emissions.

The new plant is expected to employ technology, which converts methane to hydrogen by creating a chemical reaction under high-temperature steam, LG Chem said in a statement.

"The plant is a key component of LG Chem's strategy to increase its use of renewable energy such as hydrogen in the NCC process by up to 70% by 2025, as well as to the company's plans to actively utilize hydrogen in the production of renewable bio feedstocks such as hydro-treated vegetable oils."

LG Chem, which operates three naphtha crackers with a total ethylene capacity of 3.3 million tonnes per year, said it expected the construction of its hydrogen plant to commence in the first half of 2023 with aims to achieve completion by the second quarter of 2024.

As part of its plan, LG Chem plans to cooperate with Taekyung Chemical, the largest carbonic acid gas producer in Korea using high-purity CO2 as raw material. LG did not provide financial details.