The Saudi Public Investment Fund (PIF), POSCO and Samsung C&T Corporation Engineering & Construction Group (Samsung C&T) announced on Tuesday the signing of a three-party MoU with the goal of developing a project to produce green hydrogen for export. The MoU was signed during the Saudi-Korean Investment Forum held in Riyadh.
The MoU was signed on the sideline of the official visit by South Korean President Moon Jae-in to the Kingdom where he met with Crown Prince Mohammed bin Salman, Deputy Prime Minister and Minister of Defense.
It was signed by Yazeed A. Al-Humied, deputy governor and head of MENA Investments at PIF, Yoo, Byeong-Og, head of industrial gases and hydrogen business unit of POSCO, and Oh, Se-chul, president and CEO of Samsung C&T Engineering & Construction Group, in the presence of several government representatives and other stakeholders.
Minister of Energy Prince Abdulaziz bin Salman, South Korea’s Minister of Trade, Industry and Energy Moon, Sung Wook, and PIF Governor Yasir Al-Rumayyan, also attended.
Through participation in the green hydrogen project, the three parties aim to enable the Kingdom’s strategy to play a leading role in the Low Carbon Hydrogen market to support global efforts to build a more sustainable future through the reduction of carbon emissions.
The MoU encompasses collaborations to conduct feasibility studies, which is one of the conditions to signing the definitive agreements.
“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,” said Al-Humied. “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.”
“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 POSCO’s Yoo.
Yoo added: “We look forward to successfully establishing hydrogen production operations and supporting the industry’s growth in the Kingdom.”
“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.
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% stake in POSCO E&C in 2015, which is one of the affiliates of POSCO.
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.
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 seven million tons of hydrogen in 2050 through initially targeting 0.5 million tons of hydrogen production with an investment of KRW 10 trillion up to 2030.
Samsung C&T is promoting eco-friendly energy solutions through preparing its green hydrogen business as part of its future growth plans.
Samsung C&T will actively develop its international green hydrogen business using its experience on global renewable project execution and its extensive experience and presence in the Middle East region, which is a core market for its green hydrogen business and those of its customers.
Such a collaboration integrates well with PIF’s 2021-2025 strategy, which aims to develop new and promising sectors.
In addition, the collaboration will contribute to the diversification of the Kingdom’s economy in line with Vision 2030 following PIF’s successful unlocking of sustainable new sectors in Saudi Arabia, such as, renewable energy and waste management.