Hyosung supplies Korea’s first CNG station for taxis

Hyosung is actively expanding its CNG charging business by completing the first CNG station for taxis in Korea.

Hyosung announced on the 12^th that they recently supplied the CNG charging system to Sangrok Logistics, a taxi company in Ansan, Gyeonggi.

The CNG charging system consists of one 350-horsepower compressor and four taxi chargers. The speed can be controlled so that there is no load, even when charging four taxis at the same time, which reduces electricity costs. Moreover, it can be installed in unused paces at taxi companies, unlike LPG stations.

CNG is an environmentally-friendly fuel with remarkably less air contaminants emitted during combustion than is the case with other fuels. Its fuel efficiency is 40% greater than LPG (6km) with an average of 10.2km per liter, and its fuel price is around 1036 KRW per liter, which is lower than LPG (1065 KRW per liter). A further reduction in fuel price is expected for CNG as the U.S. steps up its extraction of shale gas (natural gas in shale layers).

The fact that there are increased supply opportunities for CNG compressor materials may also have a positive effect on market expansion. CNG compressors or hydrogen energy containers must be coiled up in carbon fiber to ensure they can withstand high pressures. Korea has previously relied on imports for carbon fiber, but last June Hyosung completed its carbon fiber manufacturing facilities in Jeonju, Jeonbuk, and now supplies carbon fiber to Korean and overseas markets.

Moreover, with a legislative bill on the Development of Taxi Services (Taxi Development Act) passed by the National Assembly last December, it is now possible to receive support for the CNG remodeling of taxis and construction of gas stations, which will significantly increase CNG taxi conversions starting this year.

“We put the knowhow we have built up from over 50 years of experience in the field of heavy industry, including rotators and compressors, into promoting the CNG charging business,” said Industrial Machinery PU President Lee Jeong-gyu. “So far we’ve established over 200 systems (achieving a market share of over 40%) in Korea, which are all in stable operation. If the CNG taxi market becomes vitalized, Hyosung will be able to enjoy a synergy effect of expanding not only the charging system business, but also the carbon fiber business.”