Hyundai Motor, the renowned South Korean automaker, has reportedly announced plans to construct a liquefied natural gas (LNG) power generation plant within its Ulsan car manufacturing facility to ensure a consistent energy supply while lowering energy usage as well as carbon emissions.
The automaker stated that the proposed LNG power unit will digest almost 70% of the total electricity consumed annually at the nation's biggest automobile production.
The new plant, which will be made up of one steam turbine and two gas turbines, will have a power generation capacity of 184 megawatts, substituting 72% of energy from Korea Electric Power Corporation plus 59% of steam produced by around 15 existing boilers.
The Ulsan facility uses 1.29 million MW-hours of energy and 710,000 metric tons of steam per year to manufacture the products.
This is supposedly the first time Hyundai Motors has built a self-contained, large-scale power plant within a manufacturing facility. The Ulsan facility produces 1.5 million automobiles per year, supposedly the largest of all of the automaker's factories worldwide.
The firm, in a statement included in the ministry's environmental impact assessment report, said that in keeping with the government's energy policy agenda, the installation of a private power generating facility would cut emissions of greenhouse gases, increase supply stability, demand, and ensure economic viability.
Hyundai's decision to build an LNG power plant is also in accordance with Hyundai CEO Chung Euisun's business objective of achieving carbon neutrality, a goal that he had shared in September of last year.
Euisun stated that by 2045, the firm will create zero carbon emissions throughout the car manufacturing process.
The new LNG power generation facility will help the carmaker reduce its greenhouse emissions by an additional 30% while also lowering its electricity bills.
As per industry sources, since Hyundai Motor utilizes thousands of gigawatts of power every year, it will be much more profitable for the company to create its own power in the long run.
Work will start later this year, with an expected completion date of 2025. The construction will begin as soon as the Ministry of Environment's environmental impact assessment procedure is done.