Hyundai Motor finds itself at a crossroads as it contemplates increasing expenditures to salvage Hydrogen Energy Network (HyNet), a struggling operator of hydrogen charging stations. With Korea Gas Corp. (KOGAS) refusing further financial assistance, Hyundai faces mounting pressure to support the floundering venture.
As the largest shareholder of HyNet, KOGAS’s refusal to inject additional funds exacerbates the financial predicament. HyNet’s accumulating losses since its establishment in 2019, culminating in a significant net loss in 2022, underscore its dire financial state. Despite attempts to bolster capital through share issuances, HyNet’s plea for a capital increase in the face of KOGAS’s mounting debt has been rebuffed.
The potential bankruptcy of HyNet poses a grave threat to the burgeoning hydrogen mobility sector, jeopardizing the convenience of drivers reliant on hydrogen-powered vehicles. Such an outcome would not only disrupt the hydrogen ecosystem in Korea but also impede Hyundai Motor’s ambitious plans to pioneer hydrogen-powered mobility solutions.
Despite the financial hurdles, Hyundai remains steadfast in its commitment to advancing hydrogen technology. Executive Chair Chung Euisun’s assertion at CES 2024 underscores Hyundai’s long-term vision for hydrogen-powered mobility solutions, signaling its dedication to shaping the future of sustainable transportation.
