Hydrogen is extracted from LNG and recharged… Hyundai Rotem’s future food’Hydrogen Extractor’

Input 2021.03.03 10:00

Independent branding of hydrogen extractors by 2023 with Hyundai Motor Company
Next month’s prototype of’dispenser’ for vehicle charging… Mass production next year

Eui-Seon Hyundai Motor Company (005380)As the group chairman expands his stride to build a hydrogen economy, Hyundai Rotem (064350)It is also accelerating to increase the capability of’hydrogen infrastructure facilities’. The existing plan is pulled for one year each, and the hydrogen production equipment is planned to be branded independently by 2023. It is a strategy to make it the future food of Hyundai Rotem with the ability to store and supply facilities.



Hydrogen extractors are located on both sides of the H2 facility assembly center of Hyundai Rotem in Uiwang-si, Gyeonggi-do. / Provided by Hyundai Rotem

Three hydrogen extractors with a length of 13 meters and a width of 3 meters were placed in the’H2 (hydrogen) facility assembly center’ of Hyundai Rotem in Uiwang-si, Gyeonggi-do, visited on the 2nd. It won orders from Chungju City, Chungbuk and Samcheok City, Gangwon last year, and Hyundai Rotem plans to deliver the product within the first half of this year after completing the final work. This is the first product shipped since the hydrogen extractor plant was completed in December of last year. In January of this year, Hyundai Rotem also won orders for two hydrogen extractors for hydrogen bus charging stations in Incheon.



A hydrogen extractor is a facility that extracts hydrogen from natural gas or biogas. After compressing the gas, it is heated to a high temperature of up to 1000 degrees to extract hydrogen. After the impurities are removed, hydrogen with a purity of 99.95% that can be used as fuel is produced. After the extraction process, the residual gas is used to reheat.

Seo Seong-won, manager of Hyundai Rotem’s hydrogen energy development team, explained, “The carbon monoxide generated during the heating process is converted into hydrogen and carbon dioxide by using a catalyst again.”



Hyundai Rotem’s hydrogen extractor that separates hydrogen from natural gas. / Provided by Hyundai Rotem

◇ Hydrogen extractor secures competitiveness through’localization and large-scale’

Hyundai Rotem’s hydrogen extractor is the most economical advantage. Hyundai Rotem’s hydrogen extractor efficiency is around 70%. This means that when 100 calories of city gas are converted to hydrogen, more than 70 calories are produced. Energy efficiency of 70~80% is evaluated as high efficiency. Although technology development is in progress, the efficiency is up to twice as high as the’water electrolysis’ technique, which separates hydrogen from water using electricity.

In addition, the existing natural gas supply chain can be utilized. By connecting only a 2 billion won hydrogen extractor to a gas supply pipe, it can be converted into a production facility, which can greatly reduce initial investment costs. Distribution costs can also be reduced compared to an off-site method where hydrogen is supplied from other sources through a tube trailer.

Hyundai Rotem plans to increase its cost competitiveness through localization. Currently, 80% of Hyundai Rotem’s hydrogen extractor parts are domestic products. Hyundai Rotem plans to localize all products except catalysts by completing the development of power line communication (PLC) that controls heaters, reactors, and facilities in the first half of the year. When the localization rate reaches 100%, it is expected to secure 15% price competitiveness compared to foreign products.

It also promotes enlargement. Hyundai Rotem’s hydrogen extractor can produce 640kg per day. Based on Hyundai Motor’s SUV hydrogen electric vehicle’Nexo’, it is the amount that can fill 116 fuels. Hyundai Rotem is currently capable of producing 20 such small hydrogen extractors per year, and plans to introduce a hydrogen extractor with a hydrogen production capacity of 2000kg per day by the second half of next year. Previously, it was aimed at 2024, but it was a year ahead.

Young-jin Joo, head of Hyundai Rotem’s hydrogen business team, said, “We will complete the localization and enlargement of hydrogen extractors with Hyundai Motor Company by 2023 to create our own brand.”



A bird’s-eye view of Hyundai Rotem’s Dangjin Hydrogen Shipping Center. / Provided by Hyundai Rotem

◇ From hydrogen production to storage and supply… Shall we reproduce the glory of the plant business?

Hyundai Rotem is also speeding up its hydrogen storage and charging business. The’dispenser’, which is a hydrogen charging device, is scheduled to be released next month when the final design is confirmed. The dispenser serves to put hydrogen fuel into the hydrogen car in the form of a gasoline commonly found at gas stations. It plans to mass-produce and sell at the hydrogen extractor plant next year after going through a demonstration project.

In addition, a compressor that increases the density of produced hydrogen from 10 bar to 200 bar is also introduced. Liquefied hydrogen and liquid hydrogen are also being studied. Through such research and development, Hyundai Rotem will have all the infrastructure facilities capabilities from hydrogen production to storage and charging. Hyundai Rotem’s target sales for the hydrogen division this year are 60 billion won, and by 2025, it is aiming at 350 billion won.

Hyundai Rotem’s acceleration in the hydrogen infrastructure facility is also in line with the sluggishness of its main plant business. Hyundai Rotem’s plant division Kia Motors (000270)Overseas factory car production facilities and Hyundai Steel (004020)He took over the 1st, 2nd and 3rd blast furnace (furnace) projects and served as a filial son. The plant division alone generated operating profits of 139.2 billion won in 2012 and 102.4 billion won by 2013.

However, it became a headache as the number of subsidiaries decreased and the company was caught up in overseas low-cost orders. ▲ -29.6 billion won in 2014 ▲ -51 billion won in 2015 ▲ -42 billion won in 2016 ▲ -48 billion won in 2017 ▲ -164 billion won in 2018 ▲ -391 billion won in 2019. Due to the sluggish plant business, it made annual operating losses (consolidated) for two consecutive years in 2018 and 2019. Last year, the plant division made an operating profit of 11.4 billion won, which was tentatively counted as turning to the black.

The first step is expected to be the hydrogen supply and delivery center, which will open in Dangjin, Chungnam this month. Up to 4000 kg of hydrogen per day are distributed through the shipping center. It is a structure to supply by-product gas produced by Hyundai Steel Dangjin Works to places where hydrogen is needed by using a tube trailer that can store 250kg per unit through Hyundai Rotem’s hydrogen extractor and compressor.

An official from Hyundai Rotem said, “We will localize key equipment and technologies related to the hydrogen infrastructure industry and foster them into future foods with global competitiveness.”

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