Saudi Arabia's sovereign wealth fund - the Public Investment Fund (PIF), has signed an MoU with South Korean industrial majors - Posco and Samsung C&T - to develop a green hydrogen production facility in the kingdom mainly for export purposes.
The tripartite agreement was signed on the sidelines of the Saudi-Korean Investment Forum, held in Riyadh during the visit of the President of Korea to the Kingdom.
The MoU included the implementation of feasibility studies to develop a green hydrogen production project in Saudi Arabia for export purposes, it stated.
The cooperation among the parties is in line with the kingdom’s strategy to adopt a leading role in the economy based on carbon recycling, and to support international efforts to build a more sustainable future by reducing carbon emissions, it added.
On the key agreement, Yazeed bin Abdulrahman Al Humaid, PIF Deputy Governor and Head of the General Department for Investments in Mena, said it comes in line with PIF's keenness to expand its investments in the field of green hydrogen, in addition to implementing many projects that achieve sustainability.
"Undoubtedly, the PIF plays a vital role in achieving the kingdom's target via reaching zero neutrality by 2060," he stated after signing the deal with Byeong-Og Yoo, the head of the Industrial Gas and Hydrogen Business Unit at Posco and Sechul Oh, the CEO of Samsung C&T Group.
The signing ceremony was attended by Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy; Moon Sungwook, Minister of Trade, Industry and Energy of the Republic of Korea, and Yasser bin Othman Al-Rumayyan, Governor of the Public Investment Fund (PIF) and other senior officials.
Both Posco and Samsung C&T have signed a major service agreement that includes the technical development of liquid nitrogen for the production and storage of green hydrogen globally in 2021.
Posco also seeks to support and stimulate hydrogen production projects, as it aims to be among the top 10 producers in the world.
It aims to produce up to 7 million tons of hydrogen in 2050, and is currently targeting a production of half a million tonnes with investments of KRW 10 trillion ($8.4 billion) by 2030, it added.-TradeArabia News Service