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.



Aramco Completes Acquisition of 10% Stake in Horse Powertrain Limited

Aramco’s pavilion at the Global Future Investment Initiative conference held in Riyadh (FII webiste)
Aramco’s pavilion at the Global Future Investment Initiative conference held in Riyadh (FII webiste)
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Aramco Completes Acquisition of 10% Stake in Horse Powertrain Limited

Aramco’s pavilion at the Global Future Investment Initiative conference held in Riyadh (FII webiste)
Aramco’s pavilion at the Global Future Investment Initiative conference held in Riyadh (FII webiste)

Aramco, one of the world's leading integrated energy and chemicals companies, through a directly and wholly owned subsidiary, Aramco Asia Singapore Pte. Ltd., has completed the purchase of a 10% equity stake in Horse Powertrain, a global leader in hybrid and internal combustion powertrain solutions.

The transaction builds on Aramco's efforts to develop new mobility solutions with the potential to reduce transport emissions.
The transaction's completion follows the signing of definitive agreements on June 28, 2024, and receipt of all applicable regulatory approvals. Aramco's investment is based on Horse Powertrain's €7.4-billion enterprise valuation, in which Renault Group and Geely (through Geely Holding and Geely Auto) each retain a 45% stake, SPA reported.
Aramco Executive Vice President of Technology & Innovation Ahmad O. Al Khowaiter said: "Addressing transport emissions requires a wide range of approaches that consider the diverse nature of the global vehicle fleet, broad disparities in transport infrastructures, and the specific needs of motorists in different countries. At Aramco, we are pursuing several potential innovative solutions, from lower-carbon synthetic fuels to more efficient internal combustion engines, as we look for opportunities to make a difference. Our investment in Horse Powertrain builds on our considerable R&D in this field. In joining forces with two of the world's leading carmakers, we aim to leverage our collective know-how to take lower-emission mobility solutions forward."
For his part, CEO of Horse Powertrain Matias Giannini said: "We are delighted that Aramco has closed its investment in Horse Powertrain. Aramco's expertise in alternative and synthetic fuels makes Aramco the ideal partner for us to deliver lower-emission powertrain solutions. By strengthening our technology leadership with this partnership, Horse Powertrain will only become more valuable as a partner to automotive brands looking to benefit from our expertise and global production footprint."

CEO of Valvoline Global Operations Jamal Muashsher said that as a technical partner and supplier to Horse Powertrain, "we look forward to applying Valvoline Global's 150-plus years of automotive expertise and tradition of innovation to advance future-ready solutions in internal combustion engine technology, fuels, and lubricants. Our newest joint effort with Horse Powertrain and Aramco builds on Valvoline Global's strong history in original equipment manufacturer partnerships. Through collaboration, we are helping to shape the next generation of mobility."

Aramco's investment is expected to accelerate Horse Powertrain's efforts to develop next-generation internal combustion engines (ICE), hybrid powertrains, and complementary technologies like alternative fuel and hydrogen solutions. As part of the transaction, Aramco and affiliate Valvoline Global Operations will collaborate with Horse Powertrain on innovations in ICE technology, fuels, and lubricants.
Thanks to its technology leadership, global manufacturing, and economies of scale, Horse Powertrain will further solidify its value proposition to automotive and transportation groups worldwide. Horse Powertrain aims to become a peerless partner for accessible, cutting-edge hybrid and ICE powertrain solutions, helping to reduce global vehicle emissions.