South Korea and Saudi ink deals for clean energy expansion

The cooperation includes two agreements and five MoUs for multiple energy deals.

South Korea’s Ministry of Trade, Industry and Energy (MOTIE), along with several notable energy agencies and companies, entered into two agreements and five memorandums of understanding (MOU) with Saudi Arabia and its energy counterparts for hydrogen projects and crude oil reserve deals.

The partnership, “Korea-Saudi Hydrogen Oasis Cooperation Initiative," allows both energy-rich nations to cooperate for the expansion of clean hydrogen areas, covering the entire hydrogen ecosystem from production to distribution. The deal spans all public-private joint efforts on clean hydrogen production.

In addition, Korea Electric Power Corporation (KEPCO), POSCO Holdings, Lotte Chem and other firms arranged a cooperation for a US$15.5b blue ammonia project in the Ras Al-Khair region with Saudi Aramco. HD Hyundai Oilbank and Aramco also entered into a “Clean Hydrogen Energy Project Cooperation MOU." KEPCO and Saudi’s Al Jomaih Energy and Water Co. partnered for a hydrogen project deal.

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Korea National Oil Corporation (KNOC), furthermore, contracted Aramco for a crude oil reserve agreement, wherein the Saudi oil provider will store crude oil in the Ulsan Oil Hub for supply emergencies.

The agreement also includes power-based deals, with HD Hyundai Electric and Saudi-based firm AlGihaz on an MoU for a substation bid cooperation, and Korea-based manufacturer BHI and Rezayat Group for an equipment and materials supply chain.

With the deals finalised, both the Korean and Saudi governments expect that the cooperation will prompt a gradual energy transition to clean hydrogen and other reliable sources.