Saudi Arabia and South Korean firms to develop green hydrogen plant
Saudi Arabia’s sovereign wealth vehicle Public Investment Fund (PIF) has signed a memorandum of understanding (MoU) with South Korea’s Posco and Samsung C&T to develop a new green hydrogen production plant
Saudi Arabia’s sovereign wealth vehicle Public Investment Fund (PIF) has signed a memorandum of understanding (MoU) with South Korea’s Posco and Samsung C&T to develop a new green hydrogen production plant.
The main objective of the agreement is to complete a feasibility study for an export-oriented project, the PIF explained in a released statement.
The three-party MoU was signed during the Saudi-Korean Investment Forum in Riyadh, which was held during the visit of the South Korean President to Saudi Arabia.
“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 Yoo Byeong-Og, head of industrial gases and hydrogen business unit of POSCO following the signing of the agreement.
In June 2020, the PIF launched the largest green hydrogen project in the Middle East and North Africa (MENA), when US-based Air Products and the local Acwa Power signed initial agreements for a $5bn hydrogen-based ammonia plant at PIF’s NEOM megacity development on the Red Sea Coast of the kingdom.
The project will be powered by more than 4GW of renewable energy, and will be able to produce 1.2 million tonnes per year of ammonia. The plant will produce 650 tonnes of hydrogen daily.
The project is scheduled to begin commercial operation in 2026.
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