Hyundai Heavy to develop hydrogen-related biz as new growth engine

Hyundai Heavy Industries Group (HHIH) will develop hydrogen-related businesses as its new growth engine by establishing a unit that handles hydrogen production and its use on land and sea by 2030.

The plan was in response to tightened environmental regulations and rising demand for eco-friendly fuels.

Ships propelled by hydrogen only create water in the process of generating power, making it an environmentally-friendly alternative to fossil fuels.

Korea Shipbuilding & Offshore Engineering Co. (KSOE), the group's sub-holding company, will go ahead with a project to produce green hydrogen by splitting water through electrolysis, using renewable energy sources such as wind power without emitting carbon dioxide.

The shipbuilding group will also accelerate the development of hydrogen carriers.

In October, South Korean ship quality assurance and risk management company KR, and the Liberian International Ship & Corporate Registry approved Hyundai Mipo Dockyard Co.'s design of a commercial hydrogen carrier.

KSOE also will develop ships propelled by hydrogen fuel cells.

The group's refining unit, Hyundai Oilbank Co., is set to build about 180 hydrogen stations by 2030 across the country, while other affiliates will also be engaged in various hydrogen-related businesses.

Earlier this month, HHIH inked a deal with state-run Saudi Aramco to cooperate in producing blue hydrogen.

To support its environment-friendly projects, the group plans to raise one trillion won by listing shares of Hyundai Heavy Industries Co. this year.

In February, HHIH raised about 800 billion won via a pre-initial public offering of its ship repairing unit Hyundai Global Service to garner investment for its hydrogen business.