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| GS Energy Vice President Kim Seong-won, left, and Hyundai Glovis CEO Lee Kyoo-bok pose for a photo after signing a memorandum of understanding at the Hyundai Glovis headquarters in Seoul Monday. Courtesy of Hyundai Glovis |
By Lee Kyung-min
Hyundai Glovis, the logistics affiliate of Hyundai Motor Group, and GS Energy, the energy affiliate of GS Group, have teamed up to fortify ammonia-hydrogen energy cooperation, according to market watchers, Monday.
The move is the latest development in their joint green energy partnerships, about four months after the two signed a memorandum of understanding (MOU) for carbon capture, utilization and storage (CCUS) projects with GS Caltex and Korea East-West Power last November. The four entities agreed to strengthen cooperation in promoting liquid carbon dioxide and battery recycling projects.
The Hyundai and GS affiliates signed an MOU at Hyundai Glovis' headquarters in Seoul, attended by Hyundai Glovis CEO Lee Kyoo-bok and GS Energy Vice President Kim Seong-won.
Under the agreement, Hyundai Glovis will provide maritime transportation services for clean energy projects. GS Energy will construct ammonia and hydrogen production facilities and import terminals.
The two agreed to cooperate for joint investment opportunities and to identify market demands for clean ammonia and hydrogen production.
Hyundai Glovis plans to expand its presence in the green gas transportation market with its marine transportation capabilities, as underpinned by a 200 billion won ($153 million) investment to build two very large gas carriers (VLGC). Each with a loading capacity of 86,000 cubic meters will enter service next year. VLGC vessels are a sub-class of generic gas carriers that transport a considerably high volume of gas.
The Hyundai affiliate's vessel is able to transport not only liquefied petroleum gas (LPG) but also ammonia. Less than 10 percent of VLGCs worldwide are able to ship ammonia, it said.
The firm says the ammonia transport business is promising. Ammonia, an inorganic compound of hydrogen and nitrogen, is widely considered a cost-effective and efficient method for transporting hydrogen over large distances. This is due to its higher energy density by volume and relative ease of handling.
Ammonia is used mostly in fertilizers and petrochemicals, carried by small vessels. But the Hyundai affiliate's VLGC will play an increased role when large volumes of ammonia transportation becomes more common.
"We will strive to become a leading global shipping industry player in the broader context of energy transition," a Hyundai Glovis official said. "We will showcase our global competitiveness in the green energy sector, as buttressed by collaboration with GS Energy."
