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Saudi PIF Signs MoU to Develop Green Hydrogen Production

The Saudi Public Investment Fund (PIF), POSCO and Samsung C&T Corporation Engineering & Construction Group (Samsung C&T) signed a three-party MoU with the goal of developing a project to produce green hydrogen for export. (SPA)
The Saudi Public Investment Fund (PIF), POSCO and Samsung C&T Corporation Engineering & Construction Group (Samsung C&T) signed a three-party MoU with the goal of developing a project to produce green hydrogen for export. (SPA)
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Saudi PIF Signs MoU to Develop Green Hydrogen Production

The Saudi Public Investment Fund (PIF), POSCO and Samsung C&T Corporation Engineering & Construction Group (Samsung C&T) signed a three-party MoU with the goal of developing a project to produce green hydrogen for export. (SPA)
The Saudi Public Investment Fund (PIF), POSCO and Samsung C&T Corporation Engineering & Construction Group (Samsung C&T) signed a three-party MoU with the goal of developing a project to produce green hydrogen for export. (SPA)

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.

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COP 16 Launches Monday in Riyadh: Advancing a World Free of Desertification

Riyadh is hosting this Monday the 16th Conference of the Parties (COP 16). (Asharq Al-Awsat)
Riyadh is hosting this Monday the 16th Conference of the Parties (COP 16). (Asharq Al-Awsat)
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COP 16 Launches Monday in Riyadh: Advancing a World Free of Desertification

Riyadh is hosting this Monday the 16th Conference of the Parties (COP 16). (Asharq Al-Awsat)
Riyadh is hosting this Monday the 16th Conference of the Parties (COP 16). (Asharq Al-Awsat)

Global attention turns to Riyadh, Saudi Arabia, as it hosts the 16th Conference of the Parties (COP 16) under the United Nations Convention to Combat Desertification (UNCCD). The event seeks to address environmental challenges threatening the planet, intensify efforts to combat land degradation, and reduce the impact of drought.
From December 2 to 13, Riyadh will host representatives from 197 countries, signatories to the UNCCD, to collaborate on effective solutions for rehabilitating millions of hectares of degraded land and building resilience against drought. The conference aims to support policymakers while engaging the private sector and civil society in protecting the environment and conserving natural resources.
COP 16 is the largest meeting in the history of the UNCCD and the first to be held in the Middle East. It also represents Saudi Arabia’s largest-ever multilateral conference and coincides with the 30th anniversary of the UNCCD, established alongside the Rio Conventions on climate change and biodiversity in 1992.
UN Secretary-General Antonio Guterres highlighted the significance of COP 16 as a potential turning point, renewing global commitment to accelerating investments in land restoration and drought resilience. He described it as the largest UN conference on land to date and a landmark event for the Middle East and North Africa.
Saudi Arabia is a key supporter of global environmental efforts. The Crown Prince’s Saudi Green Initiative aims to rehabilitate 49 billion square meters of land. This initiative has gained regional and international support, with Gulf nations already undertaking reforestation and coastal protection projects.
The Conference Program
The conference features an innovative dual-track approach, combining formal negotiations with an action-oriented agenda, according to the COP 16 presidency. This approach aims to address urgent global crises, including desertification, land degradation, and drought, through practical and implementable decisions.
The action agenda will focus on showcasing voluntary initiatives, innovative solutions, and discussions on key topics such as artificial intelligence, sustainable land management, and the social and economic impacts of land degradation. High-level ministerial sessions will explore critical issues, including drought resilience, financing, and the relationship between land degradation, forced migration, and security.
Dr. Osama Faqeeha, Deputy Minister for Environment and advisor to COP 16, emphasized the pivotal role of the conference in tackling global challenges related to land degradation and drought. He noted that Saudi Arabia has introduced the first-ever Green Zone in COP history. This zone aims to engage scientists, businesses, financial institutions, NGOs, and the public in collaborative efforts to drive lasting change.
The COP 16 agenda includes thematic days to focus discussions and accelerate outcomes: December 4: Earth Day, December 5: Food Systems Day, December 6: Governance Day, December 7: Peoples’ Day, December 9: Science, Technology, and Innovation Day, December 10: Capacity Building Day, and December 11: Finance Day.
Saudi Green Initiative Forum
In parallel with COP 16, Riyadh will host the 4th annual Saudi Green Initiative Forum on December 3–4 under the theme “Inspired by Nature”. The forum will gather policymakers, business leaders, and experts from around the world to share best practices, explore innovative solutions, and review progress toward the initiative’s sustainability goals.
Land degradation currently affects approximately 40% of the Earth’s surface, impacting the lives of 3.2 billion people worldwide, according to the UNCCD. Each year, nearly 100 million hectares of land deteriorate, while drought intensity and frequency have risen by one-third since 2000.
Despite the urgent need for action, restoration and resilience efforts remain significantly underfunded. COP 16 aims to prioritize mobilizing public and private financing to accelerate land restoration and enhance global resilience, building a sustainable future for both people and the planet.