South Korea’s Hyundai Heavy Industries Group said on March 3 that it has signed a Memorandum of Understanding (MOU) for cooperation in hydrogen and ammonia-related businesses with Saudi Aramco, the Saudi Arabian state-run oil company. It called the MOU a non-binding research and development opportunity.
The parties are seeking to find a cooperational model for eco-friendly hydrogen and ammonia, including joint research and development. Hyundai Oilbank, the oil refinery unit of HHI Holdings, plans to cooperate with Saudi Aramco on the realization of a “carbon zero” process, and Korea Shipbuilding & Offshore Engineering (KSOE), the shipbuilding unit of HHI Holdings, plans to develop the world’s first combined ship capable of carrying both liquefied petroleum gas (LPG) cargoes and captured carbon dioxide (CO2).
Hyundai OilBank will import liquefied petroleum gas from Saudi Aramco, which it will then convert into blue hydrogen. The hydrogen will be used at desulfurization facilities at Hyundai Oilbank refineries and be on the market for fuels of vehicles and power plants.
In addition, Hyundai Oilbank plans to establish a supply chain for the sale of hydrogen produced by opening up to 300 hydrogen charging stations by 2040 across South Korea.
Hyundai Oilbank will also promote a business using ammonia, and plans to receive blue ammonia from Saudi Aramco and use it as fuel for liquefied natural gas (LNG) boilers scheduled to be established by 2024.
The two parties will also strengthen cooperation in the shipbuilding business, saying that KSOE will be the first shipbuilder to develop a ship that can carry both liquefied petroleum gas cargoes and captured carbon dioxide at once. The company is also pursuing the development of ammonia carriers and propulsion ships.