Hyundai Engineering on Thursday secured an order from US energy firm GTL Americas to build a plant in the US that will turn natural gas into high-grade diesel, naphtha and jet fuel.

Under the project, the gas-to-liquid or GTL facility will be established near the city of Pine Bluff, Jefferson County, Arkansas, to generate some 41,000 barrels of fuel per day, including synthetic diesel or high cetane synthetic fuel, and paraffinic synthetic naphtha.

The GTL procedure is a high-tech process that goes beyond the simple refining of natural gas, as it transforms it into high-value petroleum products used across various industries.

Fuels obtained using GTL technology are considered more environmentally friendly as their combustion emits less carbon dioxide compared to burning conventional fossil fuels such as coal.

Hyundai's American unit will work together with GTL Americas and Houston-based S&B Engineers and Constructors to design and plan the facility.

Construction is set to begin before late 2025 and will be completed in 2029.

The signing ceremony was held in Jefferson County on Wednesday, with top executives including the Hyundai Engineering CEO Hong Hyeon-sung and GTL Americas President Leon Codron in attendance.

Additionally, Hyundai will share detailed cost breakdowns for the building of the facility with GTL Americas, an open book cost estimate method.

After the final investment decision by GTL Americas, Hyundai further aims to secure the main engineering, procurement and construction contract.

Currently, GTL Americas is known to be planning the construction of additional GTL facilities in the next few years. Hyundai aims to secure an edge in winning future GTL projects by leveraging the successful execution of this project as a stepping stone.

“With increasing global interest in carbon neutrality, we will build on our technical expertise and extensive experiences to further expand our business into the field of renewable energy, such as building a hydrogen plant," stated an official from Hyundai Engineering.

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