-OIL(CEO Anwar Al-Hejazi) has signed a Letter of Intent (LOI) with Aramco, a global integrated energy and chemicals company, to procure low-carbon ammonia, as part of its commitment to promoting the domestic hydrogen economy.
This LOI further solidifies the cooperation between the two companies, building upon the memorandum of understanding (MOU) they entered into last year to establish a hydrogen supply network. The LOI outlines the anticipated collaboration plan for the supply and utilization of low-carbon ammonia produced in Saudi Arabia and imported into South Korea.
Aramco plans to produce low-carbon ammonia, applying carbon capture and storage (CCS) technology, and S-OIL intends to import this ammonia, convert it into hydrogen, and use it for its own efforts to reduce greenhouse gas emissions and related business development.
Dr. Ryu Yul, Head of S-OIL’s Corporate Strategy & Services, stated, “By realizing the introduction of low-carbon ammonia to the domestic market, we support S-OIL’s efforts to reduce greenhouse gas emissions and the establishment of the domestic hydrogen industry.”
S-OIL has declared its entry into the hydrogen industry and actively implemented a business strategy with an aim to address climate change and secure new growth drivers, including an equity investment in FCI, a specialized hydrogen fuel cell company, and a partnership agreement with Samsung C&T for clean hydrogen business.
S-OIL plans to use this LOI with Aramco as a foundation to strengthen infrastructure development for the domestic introduction of low-carbon ammonia and related demand and business development activities in the future.
