Hyundai Glovis, the logistics arm of South Korea’s Hyundai Group, and compatriot energy company GS Energy have agreed to cooperate in eco-friendly business areas, including clean ammonia and hydrogen.
To this end, the parties signed a memorandum of understanding (MoU) on 27 March. Under the MoU, Hyundai Glovis agreed to provide maritime transportation services for the clean ammonia and hydrogen projects promoted by the two companies.
On the other hand, GS Energy will be responsible for producing ammonia and hydrogen and building related import terminals.
The companies also agreed to jointly pursue new investment opportunities. In addition, they plan to promote liquefied CO2 and used battery-related businesses together.
Last November, the two companies signed an agreement with GS Caltex and Korea East-West Power for carbon capture, utilisation, and storage (CCUS) business cooperation.
In September 2021, Hyundai Glovis entered into an agreement with Switzerland-based commodity trading company Trafigura to ship ammonia and liquefied natural gas (LPG) from 2024.
The parties are investing KRW200 billion ($172.8 million) to build two very large gas carriers (VLGCs) for ammonia and LPG transportation.
The new vessels are expected to reach the largest level among global gas carriers with a loading capacity of 86,000 cbm each.
The company is also working with US-based hydrogen and LNG supplier Air Products on establishing a global hydrogen supply chain.