Hyundai Motor ties up with SK on hydrogen, initiates first overseas fuel cell project

SK chief Chey Tae-won and Hyundai Motor Group chairman Chung Euisun

South Korea’s auto mogul Hyundai Motor Group has accelerated its hydrogen push for global leadership by forging a tie-up with battery-making SK Group and initiating its first overseas manufacturing project in China.

Hyundai Motor Group chairman Chung Euisun and SK chief Chey Tae-won are expected to sign a memorandum of understanding between the two companies to establish infrastructure for the hydrogen business with Incheon city government during the third Hydrogen Council meeting to be held on Tuesday afternoon.

Earlier in the day, Chung joined a virtual ground-breaking ceremony for its first hydrogen fuel cell system facility outside Korea in Guangzhou, Guangdong Province. The facility dubbed HTWO Guanzhou to be completed in the second half of 2022 will have initial annual capacity to produce 6,500 fuel cell systems.

Hydrogen is being pushed by new growth for energy, business and carbon neutrality commitment by the South Korean government and business sector led by Hyundai Motor.

Under Hyundai Motor-SK partnership, the two will foster the development of eco-friendly hydrogen fuel cells for power generation.

SK will produce and supply hydrogen to Hyundai Motor, and Hyundai Motor will provide its hydrogen vehicles for SK.

Hyundai Motor Group struck alliance with steel giant Posco to collaborate on replacing coal fuel with hydrogen to turn out steel and cars driving at Posco’s plants with Hyundai hydrogen vehicles.

Hyundai Motor"s Nexo. [Photo by Hyundai Motor Co.]

The Korean auto giant aims to roll out 500,000 hydrogen vehicles and 700,000 hydrogen fuel cell systems by 2030, with new releases of Nexo SUV, Xcient truck and Elec City bus on its hydrogen car lineup.

In 2018, Hyundai Motor Group announced plans to expand its supply capacity to 700,000 hydrogen fuel cell systems annually by 2030, under its mid- to long-term hydrogen roadmap ‘Fuel Cell Vision 2030.’

Through strategic partnerships with hydrogen, energy and logistics companies around the world, the Group has expanded its fuel cell system business, accelerating development of a hydrogen society and laying the foundation for the company’s HTWO brand, with initial focus on major hub regions — Korea, Europe, China and the U.S.

SK Group too is accelerating efforts to ride on hydrogen economy. Chey, who has been officially appointed as the new chairman of Seoul Chamber of Commerce and Industry recently, has shown the company’s strong will to join the move.

Late last year, SK Group launched a hydrogen business committee made up of 20 experts from affiliated units, including SK Holdings, SK Innovation and SK E&S, and directly led by CEO for quick decision making.

[Photo provided by Plug Power Inc.]

The group’s holding entity SK Holdings chose Nasdaq-trading Plug Power Inc. for this year’s first investment, acquiring a 10 percent stake for $1.6 billion to become the largest shareholder. It now is planning to build a joint venture for hydrogen business in Korea with the U.S. fuel cell company.

SK Group aims to produce 250,000 tons of blue hydrogen from 2025, which is created from natural gas with carbon capture and storage technology scooping up the resulting carbon dioxide. By 2023, it will build liquid hydrogen production facilities with an annual capacity of 30,000 tons for supply to Seoul and suburban cities.

In the longer term, SK will seek for production of green hydrogen from renewable as well.

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