Hyundai Glovis signs MOU with GS Energy on clean hydrogen, ammonia

Hyundai Glovis announced Monday it has signed a memorandum of understanding with GS Energy for cooperation on clean hydrogen and ammonia.

Hyundai Glovis CEO Lee Kyoo-bok, right, poses for a photo with GS Energy Vice President Kim Seong-won during a signing ceremony on a clean ammonia and hydrogen partnership on Monday. [HYUNDAI GLOVIS]

Hyundai Glovis announced Monday it has signed a memorandum of understanding with GS Energy for cooperation on clean hydrogen and ammonia.

Under the agreement, Hyundai Glovis will provide marine transportation services for hydrogen and ammonia businesses, while GS Energy will be responsible for producing and constructing import terminals for the two energy sources.

Hyundai Glovis has been constructing two very large gas carriers (VLGCs) with a total investment of 200 billion won ($154 million) in a move to dominate the eco-friendly gas transportation market.

The company plans to deploy two ships with loading capacity of 86,000 cubic meters per vessel to the global maritime transport market as soon as they are delivered by Hyundai Samho Heavy Industries in 2024. The Hyundai Glovis' VLGCs are designed with cargo holds made of special materials that can transport not only liquefied petroleum gas (LPG) but also ammonia.

The two companies also said they will extend their partnership in joint investment opportunities and identify market demands.

Hyundai Glovis is putting great efforts into ammonia transportation as it is believed to be a key means of transporting liquid hydrogen.

Ammonia, created by adding nitrogen to hydrogen, has a higher liquefaction point (minus 33 degrees Celsius) than liquid hydrogen (minus 253 degrees Celsius) and can store hydrogen at 1.7 times the density of liquid hydrogen, the company explained.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]