Saudi Arabia’s sovereign wealth fund, Public Investment Fund (PIF) has signed a three-party Memorandum of Understanding (MoU) with South Korea’s Posco and Samsung C&T, to develop a project to produce green hydrogen for exporting.
The main objective of the three-party MoU, signed during the Saudi-Korean Investment Forum held in Riyadh, is to complete project feasibility for an export-oriented green hydrogen project, the PIF said in a statement.
The collaboration between the three parties is set to contribute to the reduction of carbon emissions, as well as the transfer of knowledge and expertise between Saudi Arabia and South Korea.
“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. 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,” Mr. Yoo Byeong-og, Head of industrial gases and hydrogen business unit of Posco, said.
Posco is the largest steel manufacturer in South Korea. In 2015, PIF acquired a 38 percent stake in Posco E&C, which is one of the affiliates of Posco.
Based in South Korea, Samsung C&T is a leading construction company that specializes in building, infrastructure and plant businesses. The company currently looks into 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,” Mr. Oh Se-Chul, president and chief executive of Samsung C&T Engineering & Construction Group, stated.
Additionally, Posco and Samsung C&T signed a Master Service Agreement covering the technical development of liquid nitrogen for global green hydrogen production and storage in November 2021.