Hyundai Rotem Starts Hydrogen Extractor Production Line... Capable of Fuel Supply for 850,000 Nexo Vehicles

Inside the Hydrogen Extractor Equipment Assembly Center of Hyundai Rotem located in Uiwang-si, Gyeonggi-do

[Asia Economy Reporter Dongwoo Lee] Hyundai Rotem is starting full-scale production by operating a hydrogen extractor factory.

Hyundai Rotem announced on the 14th that it recently completed the construction of a hydrogen extractor factory, a device that extracts hydrogen from natural gas, and will begin operations this month.

To prepare for the increasing number of domestic hydrogen charging stations, Hyundai Rotem began construction about four months ago by remodeling part of its existing 2,000㎡ (approximately 600 pyeong) electronic components factory at the Uiwang Research Center in Uiwang-si, Gyeonggi-do, into a single-story factory building.

The company expects that operating the hydrogen extractor factory will create new jobs and generate an annual production inducement effect of over 50 billion KRW. It also anticipates that cooperation with hydrogen extractor parts manufacturers near the metropolitan area will enable the creation of a hydrogen charging infrastructure manufacturing ecosystem.

The newly completed factory can produce 20 hydrogen extractors annually. The amount of hydrogen produced from 20 hydrogen extractors is approximately 4,700 tons per year, which is enough to fuel about 850,000 hydrogen vehicles (based on the Nexo model). Hyundai Rotem plans to further expand the factory size depending on future orders for hydrogen extractors.

Earlier, Hyundai Rotem secured orders for three hydrogen extractors in May for Chungju, Chungcheongbuk-do, and Samcheok, Gangwon-do. In June, it also entered the hydrogen shipping center business by winning the contract for the Dangjin Hydrogen Shipping Center promoted by HyNet (Hydrogen Energy Network). The Dangjin Hydrogen Shipping Center, built on a site of approximately 144,000㎡, will be fully managed by Hyundai Rotem from civil engineering to procurement, design, and commissioning, and is scheduled for completion in the first half of next year.

Last month, Hyundai Rotem, along with Incheon Metropolitan City, Incheon Technopark, Hyundai Motor Company, and a total of 12 organizations, signed a Memorandum of Understanding for the promotion and development of the hydrogen industry in Incheon, initiating mutual cooperation to establish an Incheon-type hydrogen economy platform.

Leveraging the establishment of the Uiwang hydrogen extractor factory, Hyundai Rotem plans to participate in bids for hydrogen extractor and hydrogen charging infrastructure projects worth approximately 250 billion KRW next year, issued by local governments and the private sector.

The hydrogen extractors produced at the factory will be initially supplied to Chungju, Chungcheongbuk-do, and Samcheok, Gangwon-do by 2021. Notably, the hydrogen extractors produced this time incorporate a large number of domestically developed technologies, achieving a localization rate of 80%. Hyundai Rotem plans to gradually increase the localization rate and complete localization of all parts except consumable materials such as catalysts by March next year.

The company analyzed that once localization is completed, it will be possible to reduce costs by more than 15% compared to imported products, and stable supply will enable continuous maintenance, thereby securing high competitiveness in the hydrogen charging infrastructure market.

Hyundai Rotem’s strategy is to strengthen domestic and international hydrogen charging infrastructure businesses by producing not only hydrogen extractors but also key equipment required for charging station construction, such as dispensers that inject hydrogen into vehicles, using its own technology.

Hyundai Rotem stated, “As the government’s goal to promote low carbonization is expected to drive rapid growth in hydrogen-related industries, we will contribute to the development of the related industrial ecosystem by stably supplying domestically produced hydrogen extractors.”

This content was produced with the assistance of AI translation services.