HHI and Aramco signs a memorandum of understanding
Hyundai Heavy Industries (HHI) Group and Saudi Arabia’s Aramco will collaborate on developing ecofriendly energy sources, hydrogen and ammonia.
Under a strategic partnership signed Wednesday, the two parties agreed to co-develop technology and develop opportunities in ecofriendly businesses. HHI Group’s oil refining and shipbuilder affiliates will mainly work with Saudi Arabia’s state-run oil company on the project.
Oil refiner Hyundai Oilbank will import liquefied petroleum gas (LPG) from Aramco, a natural byproduct of crude oil refining, and use it as fuel to power Hyundai’s hydrogen production facilities. This way, the facility can produce hydrogen while capturing carbon dioxide typically created in the process instead of emitting it, Hyundai said.
The hydrogen will be used to operate desulfurizing facilities or as fuel for vehicles or power generators, while the collected carbon dioxide will be shipped back to Aramco where it can be used in oil drilling.
Hyundai Aramco will also have ammonia provided by Aramco to be used as fuel for its liquefied natural gas (LNG) boilers, partially substituting heavy oil which produces heavy carbon emissions.
For shipping, Aramco will work together with Korea Shipbuilding & Offshore Engineering to develop carriers that could transport the substances between Korea and Saudi Arabia. The two will embark on research to build a ship that can both carry LPG and carbon dioxide at the same time. The ammonia carrier will be developed in a way it could both hold and run on the ecofriendly energy sources.
Apart from the demand from its partnership with Aramco, Hyundai said developing these technologies will help the company to prepare for potential demand for ecofriendly ships in the future.
BY SONG KYOUNG-SON [firstname.lastname@example.org]