Hyundai Glovis, the logistics arm of Korean Hyundai Group, has signed a deal with U.S.-based hydrogen and LNG supplier Air Products to work on establishing a global hydrogen supply chain.
The parties signed a memorandum of understanding (MoU) for the establishment of a domestic liquid and clean hydrogen supply chain.
According to the agreement, the two companies plan to review cooperation in various projects. These specifically include:
- building a domestic liquid hydrogen supply chain,
- establishing a domestic blue/green hydrogen supply chain,
- promoting participation in overseas clean hydrogen shipping by sea.
They will also work on the joint development of new projects for overseas regions.
Firstly, in regards to the establishment of a domestic hydrogen supply chain, Hyundai Glovis plans to enhance domestic distribution competitiveness. It wants to secure a stable supply source for liquid hydrogen. On the other hand, Air Products will review the investment and operation of a liquid hydrogen plant.
In addition, Hyundai Glovis plans to introduce clean hydrogen and green ammonia based on its shipping capabilities, while collaborating on building a green ammonia-based hydrogen supply chain using Air Products’ original technologies such as ammonia decomposition technology.
Furthermore, the strategy of discovering new overseas business models includes combining the global network of Hyundai Glovis and the technology of Air Products.
The Korean company recently signed a transportation contract with Trafigura. It plans to start shipping ammonia and LPG by sea from 2024 onwards. Ammonia is considered the most efficient hydrogen storage and transport medium at the current level of technology.
Hyundai Glovis plans to create a hydrogen ecosystem where anyone can easily use hydrogen by building a dense hydrogen logistics infrastructure.