Hyundai Heavy Industries Holdings (HHIH) has signed a memorandum of understanding with Saudi Aramco on blue hydrogen and ammonia projects, Yonhap News Agency reported on March 4.
As per the MOU, Hyundai Oilbank, the oil refinery unit of HHIH, will import LPG from Aramco to convert into blue hydrogen, which is hydrogen produced from fossil fuel in a process that captures CO2 emissions.
“Carbon dioxide captured and stored during the hydrogen production process will be transported straight back to Aramco, which means there would be no carbon left in South Korea in the process,” the HHIH official said.
Aramco will use the CO2 captured and stored during the production process for the extraction of crude oil from exhausted oil fields.
Hyundai Oilbank plans to sell blue hydrogen to Aramco LPG for fuel electric vehicles or fuel cell power plants, or to use in desulfurization facilities.
Hyundai Oilbank plans to set up 300 hydrogen charging stations by 2040 across South Korea.
Aramco will provide Hyundai Oilbank blue ammonia produced with the carbon emissions captured and stored according the MOU.
The refiner will use blue ammonia from Aramco as fuel for its LNG boiler to be built by 2024, according to the HHIH official.
HHIH’s shipbuilding unit, Korea Shipbuilding & Offshore Engineering, will also develop the world’s first ship able to carry LPG and captured CO2 as part of the hydrogen cooperation agreement between HHIH and Saudi Aramco.
HHIH said in February it secured about Won 800 billion ($711 million) in a pre initial public offering of its wholly-owned ship repairing unit, Hyundai Global Service, for investments in the hydrogen business.