HD Hyundai Infracore : Hydrogen Engine Impact Valuation Report - English

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Published

July, 2023

Publication Organization

HD Hyundai Infracore, ESG/SharedGrowth Team

EY Hanyoung Climate Change & Sustainability Services

Contact Us

HD Hyundai Infracore, ESG/SharedGrowth Team

hdi.esg@hyundai-di.com

EY Hanyoung Climate Change & Sustainability Services Kyoungsang Park, Partner (kyoungsang.park@kr.ey.com), Sunghyun Shin, Senior Manager (sunghyun.shin@kr.ey.com)

This report has been prepared for the purpose of providing general information based on data collected by HD Hyundai Infracore and EY Hanyoung, but no steps have been taken to verify the completeness, accuracy, and reliability of the data contained in this report. This report may not be distributed, quoted, published, or reproduced in whole or in part without the prior consent of HD Hyundai Infracore and EY Hanyoung.

Interactive Guide

The Hydrogen Engine Impact Valuation Report is available as an interactive PDF that includes features such as navigation to related pages and links to related webpages.

IMPACT VALUATION REPORT

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CEO Message

THE ENGINE.

Best Reliability, Availability, and

Maintainability

HD Hyundai Infracore Engine, a technology that creates a better life for society and people, is moving toward

becoming a Global Top Engine Maker by providing a Total Solution with a Full Line-up of high-quality, high- specification engines that meet increasingly stringent environmental regulations.

HD Hyundai Infracore has been leading the development and production of the first engine technology, both domestically and internationally, since 1975.

In recent years, the engine market has been facing increasingly stringent emission regulations around the world, especially in developed markets in North America and Europe, and HD Hyundai Infracore's Engine Division has been advancing eco-friendly and high-efficiency engine technology and preemptively developing various electrification technologies as a Total Power Solution Provider leading advanced technological innovation in powertrains. In particular, we decided to develop a hydrogen combustion engine from 2021 and proposed a national project to the Industrial Technology Assessment Institute under the Ministry of Trade, Industry and Energy, and have been working on the project 'Development of 300kw-classZero-CO2 hydrogen combustion engine system and storage supply system for construction machinery and commercial vehicles' since May 2022.

HD Hyundai Infracore conducted an impact valuation of the hydrogen combustion engine to determine the potential value of the hydrogen combustion engine, which is expected to be a pillar of the future powertrain. The analysis was conducted using EY's 'Long-term Value' methodology, which measures the tangible and intangible value delivered to stakeholders over the long term through the production and use of hydrogen combustion engines.

Based on these efforts, HD Hyundai Infracore will lead innovation in the engine and construction machinery industries and grow into a company that creates not only economic growth but also sustainable value for its stakeholders. We look forward to your continued interest in the changes and innovations that HD Hyundai Infracore will make.

IMPACT VALUATION REPORT

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Vision for Hydrogen Economy

"In the coming 50 years, we will create new growth momentum different from what we have seen." - HD Hyundai-

Finding new energy sources to mitigate the speed of climate change has become a common challenge for humanity. Among various new energy sources, hydrogen is gaining global attention as a future clean energy source. HD Hyundai, in March 2021, declared its commitment to leading the hydrogen market by leveraging the capabilities of its group affiliates across the entire hydrogen value chain, from production to transportation/storage and utilization, through the 'Hydrogen Dream 2030 Roadmap'. HD Hyundai Construction Machinery Sector, we will take on the role of utilizing the hydrogen value chain by developing and commercializing fuel cell-based construction machinery such as hydrogen excavators and hydrogen forklifts, as well as hydrogen combustion engines.

• Hydrogen forklift

• Hydrogen Excavator

• Hydrogen Engine

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Features of Hydrogen Engine

HD Hyundai Infracore has been leading the development and production of the first engine technology, both domestically and internationally, since 1975. As efforts to solve the climate change crisis accelerate in all industries, there is a need to advance engine technology to reduce emissions and CO2 . Meanwhile, the need for carbon-free and pollution-free power sources has led to the development of battery-based power sources and fuel cell-based power sources. However, they are difficult to apply to large-scale mobility such as trucks and buses due to charging time, battery weight, and high price. HD Hyundai Infracore is developing a hydrogen engine, a future carbon-neutral powertrain technology that emits no CO2 and little other air pollutants, based on its high level of diesel and CNG engine technology.

A hydrogen engine is a device that generates mechanical power by burning hydrogen as a fuel, just as a diesel engine uses diesel oil and a CNG engine uses natural gas. Hydrogen as a fuel is characterized by zero carbon dioxide emissions during combustion because it does not contain carbon due to its chemical nature. In addition, hydrogen engines are similar in components to existing internal combustion engines, so existing platforms can be utilized, and retrofitting of aging equipment or vehicles is easy. In terms of price, hydrogen engine vehicles will initially have an increased component cost compared to conventional internal combustion engine vehicles due to the addition of hydrogen storage tanks, but it is expected to be lower than the cost of vehicles equipped with batteries or fuel cells.

Product for Impact Valuation

Hydrogen Engine

Development Background

Leverages existing

platforms with a

configuration similar to a traditional internal

combustion engine

Key Features

01 Hydrogen-fueled engine,

which is a zero-emission technology

Leverages existing platforms with a

02 configuration similar to a traditional internal combustion engine

03 Low cost compared to rechargeable batteries and fuel cells