Hyundai Oilbank, Air Products pen hydrogen MoU
South Korea's Hyundai Oilbank has signed a memorandum of understanding with US gases company Air Products on cooperation in the use of hydrogen energy, the former said on April 7.
Hyundai Oilbank to looking to produce and sell 100,000 metric tons/year of blue hydrogen by 2025, derived from natural gas with CO2 emissions captured and stored. It plans to leverage Air Products' source technology to extract hydrogen from imported gas and and by-products of oil refining, and tap its experience in hydrogen liquefaction.
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The two companies will also work together to develop a business model for green hydrogen, extracted from water using electrolysis with the process powered with renewable energy. Air Products signed a $5bn deal with Saudi Arabia to build a $5bn green hydrogen and ammonia production complex last year, and Hyundai Oilbank said it wanted to use ammonia in its green hydrogen plans.
Hyundai Oilbank said it also aimed to curb the share of sales revenues from its oil refining business to 40% from 85% by 2030, to reduce its environmental footprint. The company recently reached an agreement with Saudi Aramco on the supply of liquefied petroleum gas from Saudi Arabia to South Korea for producing blue hydrogen. CO2 from the process would then be transported back to Saudi Arabia, where it could be injected into oilfields to boost recovery while also sequestering it.
South Korea wants hydrogen to cover 5% of its gross energy consumption by 2040, replacing other fuels in mobility and power and heating.