l Tripartite MOU was signed on Jan. 18 to enhance green hydrogen project collaboration at the Saudi Arabia-Korea Investment Forum for Smart Innovation & Growth
l An economically ideal business site will be selected, and a project feasibility review will be completed within this year
POSCO and the Construction Division of Samsung C&T promote a green hydrogen production project in Saudi Arabia in collaboration with the country’s Public Investment Fund (PIF).
On the 18th (local time), POSCO signed a tripartite MOU on the enhancement of green hydrogen project collaboration with Samsung C&T and PIF as the main event at the ‘Saudi Arabia-Korea Investment Forum for Smart Innovation & Growth’ held at the Ritz-Carlton hotel in Riyadh, Saudi Arabia, with President Moon Jae-in in attendance.
“Saudi Arabia, which can produce new and renewable energy at the lowest prices in the world, is an important region to POSCO, which is planning to produce large amounts of hydrogen,” said Byeong-og Yoo, Head of Industrial Gases & Hydrogen Business Unit at POSCO. “We will successfully establish a hydrogen production model in Saudi Arabia and take an early lead in the hydrogen business,” he added, expressing his hopes for the project.
“Acknowledging that hydrogen is the heart of future energy, Samsung C&T is preparing to participate throughout the whole value chain, from production to use. Samsung C&T will be a great partner in the process, whereas Saudi Arabia, the world’s biggest crude oil exporter, will become the world’s biggest hydrogen exporter,” said Se-cheol Oh, CEO of the Construction Division of Samsung C&T.
“PIF will expand investment in projects related to green hydrogen and sustainability and very much welcomes collaboration with POSCO and Samsung C&T at this time. PIF will play a critical role in realizing the national goal of achieving net-zero GHG emissions by 2060, and this partnership will become an important and well-suited extension of activities that are currently underway,” said Yazeed Alhumied, Vice President of PIF.
The three companies will co-promote the green hydrogen production project based on new and renewable energy in Saudi Arabia through this MOU. First, they will select an economically ideal business site and complete a feasibility review this year. Then, they have promised to enhance strategic collaboration for expanding the hydrogen project value chain and vitalizing the hydrogen economies of both countries by utilizing the capabilities of the three companies.
PIF is one of a handful of large-scale sovereign wealth funds globally, with current investment assets reaching KRW 570 trillion. It is the partner that executed the large-scale equity investment in POSCO E&C, an affiliate of POSCO Group, in 2015. PIF has continued to collaborate with POSCO Group, and the synergy effect is expected to increase through this project.
Also, in November of last year, POSCO and Samsung C&T concluded a master service agreement for green hydrogen projects, including the construction of infrastructure for the development of overseas green hydrogen production facilities and hydrogen storage and introduction, and the development of technologies related to liquid hydrogen.
Meanwhile, POSCO is promoting hydrogen projects with the vision of jumping into the ranks of the global top 10 players in hydrogen production by producing a total of 7 million tons of hydrogen in 2050. In the mid-term, POSCO will invest KRW 10 trillion to establish a 500,000-ton hydrogen production system by 2030. To this end, it is spurring the internalization of the core technologies required to establish a global hydrogen supply chain and secure a competitive edge over the top 7 strategic countries.
Samsung C&T is promoting the establishment of an eco-friendly energy solution in response to changes in the energy paradigm and preparing green hydrogen projects as an axis of its future growth. Based on its experience of executing global new and renewable power generation projects, its extensive business experience in the Middle East, the future core market of green hydrogen, and its capabilities and customer network, Samsung C&T will aggressively advance the development of overseas green hydrogen projects.