SEOUL, March 27 (Korea Bizwire) — Hyundai Glovis Co. said Monday it has signed a memorandum of understanding (MOU) with GS Energy Corp. for a collaboration in the production and delivery of ammonia and hydrogen as it accelerates its clean energy drive.
Under the MOU, Hyundai Glovis will take charge of the marine transportation of ammonia and hydrogen, while GS Energy will be responsible for the production of the clean energy and establishing import terminals, the logistics unit of Hyundai Motor Group said in a release.
They will also work together to find new investment opportunities and clients.
Hyundai Glovis has been building two very large gas carriers (VLGC) with its 200 billion-won investment (US$154 million) as part of efforts to expand its foothold in the sea transportation of clean energy.
The 86,000 cubic-meter vessels are expected to be delivered in 2024.
Hyundai Glovis’ VLGCs use special materials to be equipped for the transportation of ammonia, a feedstock for hydrogen, in the liquefied form, the company said.
Ammonia as a source for hydrogen extraction has gained traction as it is easier to transport the gas in liquid form than liquefied hydrogen.
Hyundai Glovis and GS Energy also agreed to take the partnership further into liquefied carbon dioxide and after-use battery recycling.
In November last year, the two companies signed an MOU with a local partner to work together on the carbon capture, utilization and storage sector.