Hyundai Motor Group Signs MOU with Korea Gas Corporation to Strengthen Hydrogen Business Cooperation

Jiyoung Jo, President of Hyundai Motor Group (left), and Chae Hee-bong, President of Korea Gas Corporation, pose for a commemorative photo after signing a business agreement at the Millennium Hilton Hotel in Seoul on the 14th.

[Asia Economy Reporter Kiho Sung] Hyundai Motor Group and Korea Gas Corporation have agreed to join forces to expand hydrogen infrastructure and develop related technologies.

On the 14th, Hyundai Motor Group announced that it signed a business agreement for "Securing Competitiveness in the Hydrogen Business and Expanding Sustainable Hydrogen Infrastructure" at the Millennium Hilton Hotel in Jung-gu, Seoul, with key officials from both companies including Hyundai Motor Group President Ji Young-jo and Korea Gas Corporation President Chae Hee-bong in attendance.

Through this agreement, both parties will strengthen cooperation across the entire hydrogen infrastructure business and promote the establishment of a cooperative system to enhance Korea's hydrogen industry competitiveness. In particular, they plan to lead the expansion of commercial hydrogen electric vehicle distribution by building LNG-based hybrid hydrogen charging stations.

The agreement mainly includes ▲ technology development and joint business discovery for overall hydrogen infrastructure including overseas "green hydrogen" import ▲ establishment of a joint venture for hybrid charging stations for commercial hydrogen electric vehicles ▲ joint development of carbon dioxide (CO2) capture and utilization technologies.

Recently, the government launched the Green Hydrogen Overseas Business Group to explore ways to import affordable overseas clean hydrogen and expand hydrogen infrastructure. Additionally, with the launch of the Hydrogen Economy Committee on July 1, the government is establishing, implementing, monitoring, and evaluating the "Basic Plan for the Hydrogen Economy," and promoting key policies to become a leading hydrogen economy nation, including policy coordination, international cooperation, and ecosystem building.

First, the two companies will promote the establishment of a joint venture for the construction and operation of LNG-based hybrid charging stations. Through this, they plan to respond to the demand for charging infrastructure necessary to expand the distribution of commercial hydrogen electric vehicles such as hydrogen electric buses.

Hybrid charging stations are hydrogen charging stations that include various functions such as hydrogen production, charging, sales, and fuel cell power generation. By extracting hydrogen directly from natural gas, the hydrogen sales cost can be significantly reduced, and leftover hydrogen after charging can be sold externally or used for fuel cell power generation to generate additional revenue. This is expected to greatly improve the economic feasibility of hydrogen charging stations.

At the signing ceremony, President Ji Young-jo said, "Through cooperation between two companies representing the public and private sectors in the hydrogen field, we can more rapidly create a hydrogen industry ecosystem and strengthen Korea's hydrogen industry competitiveness through expanded global hydrogen infrastructure cooperation."

President Chae Hee-bong said, "Taking this hydrogen business cooperation with Hyundai Motor as an opportunity, we plan to proactively invest in the hydrogen business value chain and leap forward as a global hydrogen specialized company that manufactures and supplies low-carbon energy based on a joint business platform."