SEOUL, April 6 (Yonhap) — Hyundai Oilbank Co., a major South Korean refiner, said Tuesday it will work with Air Products & Chemicals Ltd., the world’s leading hydrogen supplier, to develop hydrogen technology and business models.

Hyundai Oilbank and Air Products signed a memorandum of understanding for cooperation in producing hydrogen and its applications in various areas.

The refiner said it will adopt Air Products’ technology to produce hydrogen using natural gas and crude byproducts for use in vehicles and power generation.

Hyundai Oilbank said it plans to produce 10,000 tons of “blue” hydrogen by 2025 and develop a business model for “green” hydrogen in collaboration with Air Products to switch to the less carbon-intensive business model.

There are currently three ways to make hydrogen.

Grey hydrogen is produced when the element is stripped out of fossil fuels, while blue hydrogen is produced from natural gas and produces less CO2. Green hydrogen is the cleanest variety as it uses renewable energy to produce hydrogen from water.

Hyundai Oilbank aims to reduce the ratio of its refinery business from the current 85 percent of the total to 50 percent by 2030 to reduce its carbon emissions and diversify its energy mix.

Air Products, based in Philadelphia, is the world’s leading supplier of hydrogen and hydrogen mobility solutions with over 60 years of experience.

Kim Kyo-young (front L), CEO of Air Products Korea, and Kang Dal-ho (front right), CEO of Hyundai Oil Bank Co., sign a memorandum of understanding for the hydrogen business at Hyundai’s Seoul office on April 6, 2021, in this photo provided by the company. (PHOTO NOT FOR SALE) (Yonhap)