Hyundai Oilbank to build LNG-hydrogen power plant for $335 mn

South Korean refiner Hyundai Oilbank Co. plans to build an eco-friendly power plant fueled with liquefied natural gas (LNG) and blue hydrogen to meet growing electricity demand with lower carbon emissions.

Hyundai Oilbank announced on Dec. 22 a plan to invest 400 billion won ($335.4 million) in the plant to generate 230 tons of steam per hour and 290 megawatts of electricity with a target of commercial operation from 2025. The plant is set to burn 70% LNG and 30% blue hydrogen.

“The mixed combustion of LNG and blue hydrogen is a way to achieve carbon neutrality,” said Hyundai Oilbank CEO Kang Dal-ho. “If blue hydrogen is added to an LNG power plant that can reduce greenhouse gases by 56% compared to existing fossil fuel power generation, we can cut greenhouse gases by a further 11%.”

TO MEET HIGHER POWER DEMAND

The power station is set to supply the steam and electricity to Hyundai Oilbank’s subsidiaries in its Daesan complex in South Korea such as Hyundai Chemical Co., as well as Hyundai and Shell Base Oil Co.

The Daesan complex is expected to consume more electricity on the expansion of upgraded facilities and the upcoming commercial operation of Hyundai Chemical’s heavy feed petrochemical complex (HPC).

To satisfy the higher power demand, Hyundai Oilbank in June established power-generation subsidiary Hyundai E&F and secured a license to supply energy such as electricity and heat to its industrial facilities.

Hyundai E&F is slated to meet more than 50% of the complex’s total power consumption needs, allowing Hyundai Oilbank to secure enough electricity to cover 70% of power demand. The refiner has been producing some of the steam and electricity necessary to operate the Daesan complex.

Write to Jeong Min Nam at peux@hankyung.com
Jongwoo Cheon edited this article.