South Korean refiner Hyundai Oilbank has revealed plans to build a power plant fueled by both LNG and blue hydrogen as part of a move to slash emissions.
Hyundai Oilbank, a unit of Hyundai Heavy Industries Group, said in a statement on Wednesday it would invest 400 billion won ($335 million) in the plant.
The unit would generate 230 tons of steam per hour and 290 MW of electricity and the firm plans to start commercial operations in 2025.
Also, the plant would use 70 percent of LNG and 30 percent of blue hydrogen in its fuel mix.
This would significantly reduce greenhouse gases compared to the existing fossil fuel power generation, according to the firm.
Hyundai Oilbank said the power station would supply steam and electricity to its units in the Daesan complex such as Hyundai Chemical and Hyundai and Shell Base Oil Co.
To meet higher demand and expansion plans at the Daesan plant, the firm established in June this year Hyundai E&F and subsequently won a license to supply steam and electricity to industrial facilities.
Hyundai E&F would supply more than 50 percent of the electricity demand the Daesan plant requires, Hyundai Oilbank said.
Combined with its existing electricity production, Hyundai Oilbank would supply more than 70 percent of the Daesan plant’s total consumption, it said.
South Korean LNG importing giant Kogas said in October it would supply 320,000 tons of natural gas to Hyundai E&F and the Daesan LNG combined heat and power plant for nine years from 2026.
South Korea is one of the world’s largest LNG importers. Kogas recently said the company’s November gas sales rose almost 11 percent, continuing its monthly year-on-year rise during the entire year.