Arab News, Wednesday, Jan 19, 2022 | Jamada Al-Aakhirah 16, 1443
Saudi PIF plans a green hydrogen project with Korea's Posco and Samsung C&T
Saudi Arabia:
Saudi Arabia's Public Investment Fund signed a MoU
with Korea's Posco and Samsung C&T to develop a new green hydrogen production
plant.
The MoU’s main objective is to complete project
feasibility for an export oriented green hydrogen project, the PIF said in a
statement.
The three party MoU was signed during the
Saudi-Korean Investment Forum held in Riyadh, which took place during the visit
of the President of the Republic of Korea, to the Kingdom.
The cooperation between the three entities is set
to contribute to a giant leap in the reduction of carbon emissions, as well as
the transfer of knowledge and expertise between Saudi Arabia and South Korea.
This collaboration goes well with PIF’s 2021-2025
strategy, which aims to develop new and promising sectors, the PIF said.
“PIF welcomes this collaboration with POSCO and
Samsung C&T, which is in line with PIF’s intent to increase its investments in
green hydrogen and other sustainability-linked projects. PIF plays a vital role
in realizing the Kingdom’s aim to achieve net-zero greenhouse gas emissions by
2060 and this partnership is a natural and significant extension to activities
already underway” said Yazeed Al-Humied, Deputy Governor and Head of MENA
Investments at PIF.
“The Kingdom of Saudi Arabia has the potential to
produce some of the lowest cost renewable energy in the world and is one of the
most important countries for POSCO, which is planning to develop significant
hydrogen production operations” said Yoo, Byeong-Og the Head of industrial gases
and hydrogen business unit of POSCO.
“Samsung C&T is expanding its capability across
the entire value chain from production to utilization, by focusing on hydrogen
at the center of future energy. Samsung C&T will be a close partner to Saudi
Arabia, with aims to help position the Kingdom to be one of the largest hydrogen
exporters globally” said Oh Se-chul, the President and CEO of Samsung C&T
Engineering & Construction Group.
Samsung C&T is a leading South Korean construction
company that specializes in building, infrastructure and plant businesses, while
POSCO is the largest steel manufacturer in South Korea. PIF acquired a 38
percent stake in POSCO E&C in 2015, which is one of the affiliates of POSCO.
Additionally, POSCO and Samsung C&T signed a
Master Service Agreement covering technical development of liquid nitrogen for
global green hydrogen production and storage in November 2021. POSCO promotes
hydrogen production projects with the vision of becoming a top 10 global
hydrogen producer, producing approximately 7 million tons of hydrogen in 2050
through initially targeting 0.5 million tons of hydrogen production.