Hyundai Heavy Industries to Develop Hydrogen Utilization Business with Saudi Aramco

Hyundai Heavy Industries Holdings and Aramco Sign MOU for Hydrogen and Ammonia Cooperation
Import LPG to Produce and Sell Blue Hydrogen... Re-supply Carbon Dioxide

Vice Chairman Jeong Gi-seon of Hyundai Heavy Industries Holdings (left) and Ahmad Al-Saadi, Senior Vice President of Aramco Technical Services. The two companies signed a business agreement related to hydrogen and ammonia on the 3rd.

[Asia Economy Reporter Choi Dae-yeol] Hyundai Heavy Industries Group has decided to develop business models utilizing environmentally friendly fuels such as hydrogen in collaboration with Saudi Arabia's Aramco, the world's largest company.

On the 3rd, Jung Ki-sun, Head of Management Support Office at Hyundai Heavy Industries Holdings, and Ahmad Al-Saadi, Senior Vice President of Aramco Technical Services Division, signed a business agreement related to hydrogen and ammonia. According to this agreement, they plan to concretize cooperation models using eco-friendly hydrogen and ammonia and promote joint research and development.

Hyundai Oilbank, a refining affiliate of Hyundai Heavy Industries Group, will realize a 'carbon zero' process with Aramco. They will produce blue hydrogen using liquefied petroleum gas (LPG) imported from Aramco through hydrogen production facilities and use it in desulfurization facilities or sell it as fuel for vehicles and power generation. The company explained that carbon zero is possible by supplying the carbon dioxide generated during the process to Aramco. Hyundai Oilbank plans to establish a supply chain, including installing 300 hydrogen charging stations by 2040.

They will also engage in business utilizing ammonia, considered an eco-friendly fuel. Hyundai Oilbank will use blue ammonia supplied by Aramco as part of the fuel for the liquefied natural gas (LNG) boiler to be established by 2024. Using ammonia as fuel in power plants significantly reduces carbon dioxide emissions.

Korea Shipbuilding & Offshore Engineering, the intermediate holding company of the shipbuilding division, is the first among global shipbuilders to develop ship types capable of simultaneously transporting LPG and carbon dioxide, as well as ammonia transport and propulsion vessels. The company expects that as eco-friendly hydrogen and ammonia businesses become full-fledged, it will lead to ship orders.

Vice Chairman Jung Ki-sun said, "This agreement is the first step taken by both companies dreaming of a 'hydrogen dream' through cooperation," adding, "We will promote businesses utilizing hydrogen and ammonia with Aramco to become a leading group in eco-friendly energy." Senior Vice President Ahmad Al-Saadi stated, "We have established a strategic partnership to discover new and ambitious business opportunities in the fields of blue hydrogen and blue ammonia, future energy fuels," and added, "This cooperation will help reduce greenhouse gas emissions through carbon capture."