To Promote Hydrogen Businesses with Korea South East Power
Hyundai Oilbank announced on May 10 that it has recently signed a memorandum of understanding (MOU) with Korea South East Power for cooperation in the renewable energy business. The two companies will consider jointly promoting renewable energy generation projects using hydrogen fuel cells.
The two sides also agreed to establish a joint venture to combine Hyundai Oilbank’s expertise in hydrogen production and supply and Korea South East Power’s rich know-how in operating fuel cell power plants. According to a government plan, domestic hydrogen fuel cell power generation capacity will increase to 8 GW by 2040, about 12 times the current 650MW, with the annual market size expected to reach about 7 trillion won.
Hyundai Oilbank is preparing to build a sustainable blue hydrogen ecosystem where the company produces 100,000 tons of hydrogen annually from crude oil refining by-products and natural gas and supply it as transportation and power generation fuels and converts carbon generated in the process into building materials, dry ice, and fertilizers.
Earlier, Hyundai Oilbank signed a memorandum of understanding with Air Products, the world's largest hydrogen producer, to upgrade its hydrogen technology.
In March, Hyundai Heavy Industries Group, the parent company of Hyundai Oilbank, announced Hydrogen Dream 2030, the group's hydrogen business vision, to build a hydrogen value chain ranging from hydrogen production to transportation, storage and utilization on land and sea. Hyundai Oilbank has selected blue hydrogen as one of its top three eco-friendly future projects along with white bio and eco-friendly chemical materials. Blue hydrogen is currently considered the most economical eco-friendly hydrogen production method thanks to its low manufacturing cost and high production efficiency compared to green hydrogen.
Hyundai Oilbank has decided to import LPG from overseas to produce blue hydrogen and sell it as a fuel for vehicles and power generators.