Hyundai Rotem, a train-making subsidiary of Hyundai Motor Group, said on Friday that it has signed a memorandum of understanding with Ulsan Metropolitan City to build a hydrogen fuel cell tram for a demonstration project.

The project will see the company roll out a hydrogen-powered tram and build a fueling station and a railway depot for a railway spanning 4.6 kilometers connecting Taehwagang Station and Ulsanhang Station in Ulsan – a line that has been left abandoned.

Ulsan city will provide administrative cooperation and help secure train routes for the project, as part of efforts to make the city a global hydrogen powerhouse.

Hydrogen-powered trams are thought to cost less and be more eco-friendly.

Since last year, Hyundai Rotem has been working together with Hyundai Motor to develop hydrogen-powered trams with plans to create a performance test platform vehicle.

“Through the MOU with Ulsan, which has been chosen as a city of hydrogen, we expect the commercialization of hydrogen-powered trams to speed up at home,” an official at the company said.

By Yim Hyun-su (hyunsu@heraldcorp.com)