Hyundai Oilbank to develop eco-friendly e-fuels with Danish firm

Hyundai Oilbank Co. plans to develop eco-friendly electrofuels, or e-fuels, jointly with Denmark's Haldor Topsoe as the South Korean oil refiner has been diversifying beyond the petroleum industry.

Oilbank on Nov. 4 signed a memorandum of understanding with the Danish company specializing in carbon reduction technologies to cooperate in developing e-fuels and biofuels, as well as recycling waste plastics, according to Oilbank's announcement.

E-fuels, also known as synthetic fuels, are made by mixing hydrogen produced from the water decomposition process by using electricity, with carbon dioxide. They are a virtually carbon-neutral version of gasoline, diesel and kerosene and thus regarded as a next-generation fuel, without using crude oil.

They are expected to help make combustion engine cars greener without replacing their engines. They emit carbon dioxide, but repeatedly use captured carbon dioxide.

Unlike electric and hydrogen-fueled cars, vehicles running on e-fuels can be charged at existing gas stations. 

Founded in 1940, Haldor Topsoe produces blue and green hydrogen from ammonia, which produces less CO2. It also produces hydrogen from the water decomposition process by using renewable energy.

Last April, Oilbank said it was joining hands with US gas and chemical company Air Products and Chemicals Inc. to produce hydrogen. In August, the company announced its entrance into the hydrogen fuel cell components market by building separator production plants within this year.

Haldor Topsoe has been in business cooperation with Air Products, the world’s largest hydrogen supplier. It recently agreed to provide its blue hydrogen technology to Air Products’ blue hydrogen complex in Alberta, Canada. 

Saudi Aramco holds a 17% stake in Hyundai Oilbank, where Hyundai Heavy Industries Holdings Co. owns an additional 74.13% stake.

Write to Jung-hwan Hwang at jung@hankyung.com
Yeonhee Kim edited this article