Hyundai Oilbank-Namdong Power Join Forces in 7 Trillion Won Hydrogen Power Market

Signing of MOU for Joint Development of Renewable Energy Projects
Hyundai Oilbank to Produce Hydrogen, Namdong Power to Provide Power Generation Technology... Electricity Production in Joint Venture Corporation

Song Myung-jun, Head of Management Support Division at Hyundai Oilbank (left), and Bae Young-jin, Head of New Business Division at Korea South-East Power, are posing for a commemorative photo after signing the Memorandum of Understanding for joint development cooperation of renewable energy projects at the Seoul office in Jung-gu, Seoul, on the 10th.

[Asia Economy Reporter Kim Hyewon] Hyundai Oilbank, an oil refining affiliate of Hyundai Heavy Industries Group, is entering the hydrogen power generation market.

Hyundai Oilbank announced on the 10th that it recently signed a Memorandum of Understanding (MOU) for joint development cooperation in renewable energy projects with Korea South-East Power Co., Ltd.

The two companies are considering jointly promoting renewable energy power generation projects using hydrogen fuel cells. Hyundai Oilbank plans to produce and supply hydrogen, while Korea South-East Power will provide its accumulated know-how in operating fuel cell power plants, with the goal of generating electricity through a joint power generation corporation.

The electricity produced by the joint corporation will be supplied and sold to mandatory purchasers selected under the "Hydrogen Power Generation Obligation System." Since the government plans to operate the hydrogen power generation obligation system separately from next year through the Renewable Energy Supply Obligation System, the companies aim to secure a leading position in the growing hydrogen fuel cell power generation market. According to government plans, domestic hydrogen fuel cell power generation capacity is expected to increase to 8GW by 2040, about 12 times the current 650MW, with an annual market size projected to reach approximately 7 trillion KRW.

Hyundai Oilbank is preparing to establish a sustainable blue hydrogen ecosystem by producing 100,000 tons of hydrogen annually using crude oil refining byproducts and natural gas as raw materials, supplying it as fuel for transportation and power generation, and recycling the carbon generated in the process into building materials, dry ice, fertilizers, and other resources. Korea South-East Power was the first domestic power company to introduce fuel cell power generation in 2006 and has experience in renewable energy projects such as solar power, wind power, and energy storage systems (ESS). The two companies expect synergy effects that simultaneously enhance efficiency and price competitiveness by combining Hyundai Oilbank’s hydrogen production capabilities accumulated through oil refinery operations with Korea South-East Power’s eco-friendly power generation technologies.

A Hyundai Oilbank official stated, "Starting with this MOU, the two companies plan to explore various business collaborations in the renewable energy sector. We will do our best to become a leading company not only in the oil refining business but also in the expanding renewable energy field."

In March, Hyundai Heavy Industries Group announced its hydrogen business vision, the "Hydrogen Dream 2030 Roadmap," which aims to build a hydrogen value chain covering production, transportation, storage, and utilization of hydrogen both on land and at sea.