South Korea’s major refiner Hyundai Oilbank Co. will set up a joint venture with a state-run public power company to produce hydrogen electricity as part of its parent company’s broad roadmap to build a complete hydrogen value chain by 2030.
Hyundai Oilbank said Monday that it signed a memorandum of understanding (MoU) with Korea South-East Power Co. (KOEN), a subsidiary of state utility firm Korea Electric Power Corp., to establish a joint venture that will generate electricity using hydrogen fuel cells.
Hyundai Oilbank will be supplying hydrogen for the JV while KOEN will provide its know-how and technology on renewable energy production. KOEN introduced fuel cell power generation using hydrogen in 2006, the first among local power companies, and has abundant experience in renewable energy business.
The JV will supply electricity to other power companies required under the government’s renewable energy portfolio standard to generate 10 percent of power from renewable energy sources by 2023.
The Korean governments expect that the domestic hydrogen fuel cell power generation capacity will reach 8GW by 2040, 12 times larger than the current 650MW, with the market size reaching 7 trillion won ($6.25 billion).
In line with the government’s hydrogen economy initiative, Hyundai Oilbank has set a goal to produce 100,000 tons of blue hydrogen by 2025 and reduce the share of oil refinery revenue to 40 percent by 2030 from the current 85 percent.
Earlier in March, Hyundai Heavy Industries Group, the parent of Hyundai Oilbank, unveiled the ‘Hydrogen Dream 2030 Roadmap,’ a plan to build a hydrogen value chain from production to transport, storage and use on hydrogen fuel.
To speed up its transition into a renewable energy company with less reliance on fossil fuels, Hyundai Oilbank signed an MOU last month with the world’s leading hydrogen supplier Air Products & Chemicals Inc. to produce hydrogen from crude oil byproducts.
The oil refiner also clinched a deal with Saudi Aramco to use its blue ammonia as fuel for a liquefied natural gas (LNG) boiler, which is scheduled to be established by 2024, to reduce carbon emissions.
By Won Ho-sup and Lee Soo-min
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