The biggest barriers to a hydrogen economy have been cost and infrastructure. Building dedicated hydrogen pipelines and establishing ultra-high-pressure and ultra-low-temperature storage facilities requires enormous social costs. Jeon Jae-hong, CEO of AES Tech, found a solution in a completely different place.
“Rather than building new hydrogen infrastructure, we can leverage the global ammonia storage and transportation infrastructure that has been in place for over 100 years.”
AES Tech proposes a hydrogen supply model that utilizes existing infrastructure through an ammonia electrochemical process that does not require high-temperature heating. CEO Jeon Jae-hong stated, "This can significantly reduce the burden of building new hydrogen-specific infrastructure," adding, "It can reduce the overall cost of building a hydrogen economy by approximately 25-30%."
Overcoming Three Structural Limitations of the Hydrogen Economy
Hydrogen is attracting attention as a key energy source for the carbon-neutral era, but it faces clear practical limitations. First, existing hydrogen distribution methods require high safety standards due to the potential for contact with air. Hydrogen poses a risk of explosion if mixed with oxygen and ignition conditions are established. This complicates storage and transportation management. Furthermore, transportation costs are a major issue. Liquid hydrogen requires cryogenic temperatures of -253°C. Gaseous hydrogen requires ultra-high-pressure facilities. Building a nationwide hydrogen pipeline network would require investments in the tens of trillions of won. Finally, there are limitations to existing methods for producing hydrogen from ammonia. High-temperature pyrolysis-based ammonia cracking requires temperatures exceeding 600°C. The potential for nitrogen oxide (NOx) emissions and long startup times limit environmental performance and operational flexibility.
CEO Jeon Jae-hong, working in the trade industry, experienced the vulnerabilities of the global supply chain and energy system firsthand during the pandemic. He said, "I realized that responding to the climate crisis and transforming the energy structure are no longer 'options,'" and focused on ammonia as an alternative to addressing bottlenecks in the hydrogen economy.
AES Tech's core technology is an electrochemical hydrogen production system utilizing anhydrous liquefied ammonia. Unlike conventional high-temperature thermal decomposition methods, it produces hydrogen through an electrochemical reaction without the need for high-temperature heating to hundreds of degrees. This technology goes beyond the existing research stage and implements a system capable of continuous operation through the ammonia electrochemical reaction. It can be instantly started and stopped via an electric switch, allowing for flexible response to fluctuating power demand. It also eliminates nitrogen oxide emissions and has a short startup time, ensuring high operational efficiency. He describes this technology as "not a simple piece of equipment, but a black-box solution that intelligently controls ammonia-based hydrogen production."
Leveraging an established ammonia logistics network… an 'on-site, on-demand' model
Ammonia is a substance with proven global storage and transportation infrastructure spanning decades in the fertilizer and chemical industries. Liquid ammonia is reliably transported through commercialized logistics systems such as tanks, ships, and tank trucks. Instead of building a new hydrogen-dedicated pipeline network, AES Tech proposes an "on-site, on-demand" approach that leverages this existing ammonia storage and transportation infrastructure to produce hydrogen as needed on-site. This approach reduces logistics costs compared to long-distance gaseous hydrogen transport and lowers the final hydrogen price by approximately 13%.
AES Tech is a technology-focused company, with 90% of its workforce comprised of research and development personnel. Its headquarters is located in Wanju, North Jeolla Province, where a hydrogen-focused national industrial complex is being developed.
The company's business strategy is a two-track structure that combines direct supply of small equipment with licensing of large-scale plant technology. It has established a recurring revenue structure based on core equipment components, such as membranes and electrodes. For large-scale projects, the company collaborates with EPC and engineering firms to generate technology royalties, while for distributed and small-scale markets, it aims to generate stable revenue through a continuous supply of components.
AES Tech is conducting a proof-of-concept (PoC) in Poland. It is also discussing joint research with several European companies, including those in Germany and Italy. In Korea, the company has identified hydrogen charging stations and LNG power plants as key application areas for hydrogen co-fueling.
Their technological prowess has been objectively verified. AES Tech holds 34 domestic and international patents, and their related technology has been published in the international academic journal EES Catalysis. At the 2025 International Climate Expo, they received the Minister's Award, officially recognizing their ammonia full-cycle technology capabilities.
Expanding to data-driven driving optimization
AES Tech is building a physical AI-based system that integrates hydrogen production and operation data to perform prediction and control. The goal is to improve operational efficiency through demand forecasting and utilization optimization, and to provide customers with data-driven energy management solutions that go beyond simple hydrogen supply.
CEO Jeon Jae-hong emphasized, “For the domestic hydrogen industry to grow, logistics innovation that connects the broken supply chain is key,” and “With our ammonia-based hydrogen supply model, we want to contribute to the expansion of the Korean hydrogen economy into the global market.”
He gives this advice to younger entrepreneurs:
“Look not at how difficult a technology is, but at how big a problem it solves.”
This strategy leverages existing ammonia infrastructure to lower the barriers to entry into the hydrogen economy. The solution proposed by AES Tech is less about complex technological competition and more about a realistic transition path. Experiments are underway in Wanju to utilize hydrogen more safely, flexibly, and economically.
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