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HHI AND SAUDI ARAMCO LAUNCH HYDROGEN PROJECT

HHI AND SAUDI ARAMCO LAUNCH HYDROGEN PROJECT

Friday, March 5, 2021 

Hyundai Heavy Industries Group (HHI Group) is promoting the 'hydrogen project' in cooperation with Saudi Arabian state-run oil company Saudi Aramco.

The two companies have signed a memorandum of understanding (MoU) for cooperation in hydrogen and ammonia-related businesses. Through the agreement, the two parties are seeking an opportunity to find a cooperational model for eco-friendly hydrogen and ammonia, including joint research and development. Hyundai Oilbank, HHI's associated oil refinery unit and Saudi Aramco will work together on the 'carbon zero' process, while Korea Shipbuilding & Offshore Engineering (KSOE), the shipbuilding unit of HHIH, plans to develop a ship capable of carrying both LPG cargoes and captured CO2.

Hyundai OilBank will import LPG from Saudi Aramco which it will then convert into blue hydrogen, to be used at desulphurisation facilities at Hyundai Oilbank refineries.

The joint venture will promote the use of ammonia as eco-friendly fuel. The two parties will also strengthen cooperation in the shipbuilding business. KSOE will be the first shipbuilder to develop a ship that can carry both liquefied petroleum gas cargoes and captured carbon dioxide. The company is pursuing the development of ammonia carriers and propulsion of ships, which is expected to lead to new ship orders.

Kisun Chung, VP and Head of Management Support, said: “This agreement is the first step in cooperation between the two parties toward the 'Hydrogen Dream'. HHI Group, together with Saudi Aramco, is seeking a way to grow into a leading eco-friendly energy group by initiating projects for hydrogen and ammonia."

Ahmad A Al Sa'adi, SVP Technical Services Saudi Aramco, said: "Through this MoU, Saudi Aramco and HHI Group have built a strategic partnership to discover new and ambitious business opportunities in the field of blue hydrogen and blue ammonia, which are future energy fuels. This cooperation is expected to help reduce greenhouse gas emissions through carbon capturing process.”

An official of HHI Group said: “Under the MoU between Aramco and HHIH, the two parties agreed to collaborate on joint research and development opportunities to demonstrate the use of eco-friendly hydrogen and ammonia. There is no commercial agreement at this stage.”

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