Hyundai Heavy Industries (HHI), the world’s largest shipbuilder, and its oil refining affiliate Hyundai Oilbank today signed an MOU with Korea Electric Power Corporation (KEPCO), the state-run utility, to jointly develop overseas pet-coke based power plant businesses.

Pet-coke or petroleum coke is a carbon-rich solid byproduct that derives from oil refining processes. It is an economical energy source but it requires special equipment, CFBC (Circulating Fluidized Bed Combustion), to be used as feedstock for power generation.

HHI has a strong track record of manufacturing CFBC boilers and EPC of various types of power plants while Hyundai Oilbank is one of a few companies with a proven track record of successful management of pet-coke based power plants worldwide. KEPCO has a high reputation in developing power plant projects overseas.

Under the MOU, the three companies will build CFBC power plants adjacent to oil refineries selling pet-cokes, generate power with the pet-cokes, and sell the generated electricity back to the oil refineries. Hyundai Heavy Industries Group aims to generate about KRW 10 trillion from 20 projects for the next 5 years.

The MOU signing ceremony was attended by Chung Ki-sun, Executive Vice President of Corporate Planning Office of HHI; Moon Jong-bak, CEO of Hyundai Oilbank; and Lyu Hyang- reol, Executive Vice President of KEPCO.

Chung Ki-sun said, “We are pleased to enter into independent power plant businesses by teaming up with KEPCO, a global leading player. By creating synergy with HHI’s technology and Hyundai Oilbank’s project management expertise, we will redouble our efforts for the successful execution of the partnership.” Lyu Hyang-reol added, “We see the high potential of pet-coke based power plants as blue ocean businesses thanks to pet-coke’s low costs and its abundance.”