SEOUL (The Korea Herald/ANN) – South Korean carmaker Hyundai Motor will partner with Saudi Aramco, the biggest oil company in the world, for the development of hydrogen energy, sources told The Korea Herald on Wednesday.
An industry official familiar with the matter said the two companies would sign a memorandum of understanding on hydrogen-related business, in the presence of Saudi Arabia’s Crown Prince Mohammed Bin Salman and Hyundai Motor Group Executive Vice Chairman Chung Eui-sun.
The Saudi prince will visit Seoul from Wednesday to Thursday. During the visit, the prince plans to meet four conglomerate chiefs, including Hyundai’s Chung and Samsung Electronics Vice Chairman Lee Jae-yong.
“With the momentum from the prince’s Seoul visit, Hyundai and Aramco will sign an MOU on the comprehensive development of hydrogen as energy,” said the official. “The area of partnership will probably include Hyundai’s fuel cell technology.”
Reports and sources have referred to hydrogen as a future business for Saudi’s Aramco and said that the company has been investigating the industrial use of hydrogen and the possibility of commercialization of the energy source.
Byproduct hydrogen is made in the process of refining oil and making petrochemicals, expanding the use of oil in clean transport.
On Monday, Aramco, in a joint venture with the US’ Air Products, opened its first hydrogen fueling station in Dhahran Techno Valley, in the heart of the kingdom’s oil producing region.
Hyundai, the world’s fifth-largest carmaker, has been a global leader in the development of hydrogen vehicles, amid the South Korean government’s ambitious hydrogen drive.
Korea plans to produce 6.2 million units of fuel cell electric vehicles and build 1,200 refilling stations across the country by 2040.