Hyundai Oilbank advances into hydrogen fuel cell biz under green initiative

[Photo provided by Hyundai Oilbank Co.]

South Korea’s major oil refiner Hyundai Oilbank Co. will build a production facility for hydrogen fuel cell separators this year under its parent company Hyundai Heavy Industries Group’s business roadmap to establish a hydrogen value chain by 2030, the company announced on Thursday.

Hyundai Oilbank, led by its central technology research center, has been actively searching business opportunities in the automobile hydrogen fuel cell sector since last year, following the global trend of cutting reliance on internal combustion locomotives. The entry barrier to the hydrogen fuel cell market has been also lowered in recent years, allowing the company to advance into the separator industry.

As part of its hydrogen fuel cell business, Hyundai Oilbank already set up a facility to produce high purity hydrogen in its factory in Daesan in South Chungcheong Province.

Separators are a core part of an electrolyte membrane, which is also a key component in a battery cell, because it affects a fuel cell system’s output enhancement and durability. Electrolyte membranes block movement of electrons separated from hydrogen gas and selectively move only hydrogen ion in a hydrogen fuel cell.

Hyundai Oilbank aims to complete the construction of the new separator production plant and its test operation this year to carry out demonstration test jointly with a local car manufacturer next year with a goal to begin mass production in 2023.

It also plans to start producing electrolyte membranes next year to reduce the country’s hefty reliance on its imports. Hyundai Oilbank vows to raise 500 billion won in annual sales and 100 billion won in operating profit from its hydrogen fuel cell business by 2030.

In the long term, the company plans to jump into unit-cell business that covers overall vehicle-use hydrogen fuel cell businesses such as gas diffuse layers, electrode separators and fuel cell system for heavy equipment and buildings.

Its latest move is in line with its parent Hyundai Heavy Industries Group’s business initiative unveiled in March to build a hydrogen value chain by 2030 from production to transport and storage.

Under the roadmap, Hyundai Oilbank will build 180 hydrogen vehicle charging stations across Korea by 2030 and partner with Korea South-East Power Co. on hydrogen fuel cell development business.

The company has also established a blue hydrogen ecosystem that reuses entire carbon dioxide from hydrogen production process as carbonic gas and dry ice.

Kang Dal-ho, chief executive of Hyundai Oilbank, said that the company has recently launched a series of green projects such as solar power panel material production, greenhouse gas resourcing, and bio aircraft fuel. It will continue to invest in three future growth sectors – blue hydrogen, white bio, and environmentally-friendly material, he said.

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