Hyundai Oilbank, the oil refinery unit of HHIH, will import LPG from Saudi Aramco under the MOU 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 Saudi Aramco, which means there would be no carbon left in South Korea in the process. Saudi Arabian state-run oil company will use the CO2 to pump more oil out of the ground in a process for enhanced oil recovery. Hyundai Oilbank plans to sell blue hydrogen to Aramco LPG for fuel electric vehicles or fuel cell power plants, or to use in desulphurization facilities.
MOU also calls for Aramco to provide Hyundai Oilbank “blue ammonia” that is ammonia produced with the carbon emissions captured and stored. 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. Hyundai Oilbank and Korea Shipbuilding playing a central role, HHIH would move towards clean energy focused on hydrogen and ammonia.