Hyundai Motor Strengthens 'Hydrogen Value Chain' Alliance with UK Ineos Following Saudi Aramco
Joint Development of Hydrogen Electric Vehicles...Promoting Eco-Friendly Car Adoption
Securing Hydrogen Energy Supply System from Europe with Enhanced Green Hydrogen Policies
[Asia Economy Reporter Suyeon Woo] Hyundai Motor Group's recent move to strengthen alliances with global comprehensive chemical companies in the hydrogen energy sector is because securing a supply chain for hydrogen fuel as an energy source is essential to promote the adoption of hydrogen fuel cell vehicles. This means that for the true advent of a hydrogen economy society, not only the development of hydrogen fuel cell system technology itself but also the entire value chain from hydrogen production, transportation, storage, to utilization must be supported.
In June last year, Hyundai Motor signed an MOU to strengthen cooperation in hydrogen energy and carbon fiber fields with Aramco, the Saudi Arabian state-owned company and the world's largest oil company. This time, Hyundai has partnered with INEOS Group, the third largest global comprehensive chemical company based in the UK, to sign an MOU for building a hydrogen value chain.
First, the two companies agreed to equip Hyundai's vehicle hydrogen fuel cell system in the SUV 'Grenadier' being developed by INEOS Automotive, a subsidiary of INEOS. This joint development of hydrogen fuel cell vehicles by the two companies could influence the eco-friendly vehicle strategies of global automakers in the future.
Recently, INEOS Group announced its goal to pursue new businesses related to industrial hydrogen energy. INEOS's subsidiary Inovyn is the largest operator of water electrolysis facilities in Europe and has established a new department for hydrogen-related new business and started a project to reduce hydrogen fuel costs.
Through this MOU, the two companies plan to create hydrogen-related business opportunities and actively cooperate to expand the hydrogen economy in Europe. Hyundai will be responsible for hydrogen fuel cell systems and technical support, while INEOS will handle hydrogen production, supply, distribution, and storage. The two companies aim to start ecosystem formation from Europe, where green hydrogen policies are expanding, and later lead the establishment of a global hydrogen ecosystem.
Global investment bank Goldman Sachs forecasts that the global hydrogen market will reach $12 trillion (about 14,000 trillion KRW) by 2050. The global consulting firm McKinsey, with a conservative outlook, also predicts that the global hydrogen economy will reach $2.5 trillion (about 3,000 trillion KRW) by 2050 and create 30 million jobs.
Recently, Europe, centered on the European Union (EU), announced its goal to dramatically increase green hydrogen production through the establishment of water electrolysis facilities and expand investment in hydrogen infrastructure. The EU plans to build 6GW of water electrolysis facilities by 2024 to produce 1 million tons of green hydrogen annually and expand production to 10 million tons by 2030.
Peter Williams, Chief Technology Officer of INEOS, said, "This agreement will provide an opportunity for both Hyundai and INEOS to expand their roles in accelerating the hydrogen economy," adding, "Based on the capabilities of both companies, we will contribute to the spread of the global hydrogen ecosystem through multifaceted cooperation."
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