Yonhap News Agency reported today that Hyundai Heavy Industries Holdings Co. (HHIH) signed a deal with Saudi Aramco to cooperate on a hydrogen project.
Under the deal, Hyundai Oilbank Co. – its refining unit – will import liquefied petroleum gas (LPG) from Saudi Aramco to produce blue hydrogen, which is derived from fossil fuel resources such as natural gas.
Carbon dioxide captured and stored during the production process will also be provided to Saudi Aramco for the extraction of crude oil from exhausted oil fields.
“Last month, HHIH said it attracted about 800 billion won (US$720 million) via a pre-initial public offering of its wholly owned ship repairing unit Hyundai Global Service to garner investment for the hydrogen business.”
Hyundai Oilbank plans to establish 300 hydrogen charging stations by 2040 across South Korea. Hyundai Oilbank has also signed up to take blue ammonia from Aramco. Aramco acquired a 17% stake in Hyundai Oilbank in December 2019.
Hyundai Heavy, South Korea’s largest shipbuilder, said today it is creating new ships that can carry LPG and CO2 at the same time, while also working on designs for ammonia carriers and ammonia-fuelled ships. Subsidiary Hyundai Mipo Dockyard is pressing ahead with plans to commercialise ammonia-fuelled ships by 2025. The Korean yard has been working on the project with engine maker MAN Energy Solutions and British class society Lloyd’s Register.