On the sidelines of the South Korean president’s visit to Riyadh, the Saudi Public Investment Fund signed a memorandum of understanding with POSCO and SAMSUNG C&T to develop a new project to produce green hydrogen which is produced by electrolysis of water using the electricity produced from renewable energies.
Saudi Arabia is planning the world’s largest green hydrogen project in Neom.
The signing of the memorandum comes on the sidelines of the (Saudi-Korean Investment Forum), hosted in the capital, Riyadh, during the visit of the South Korean president to the Kingdom.
Cooperation between the parties is in in line with the Kingdom’s strategy to take a leading role in the carbon recycling economy and to support international efforts to build a more sustainable future by reducing carbon emissions. The MoU provided for the implementation of feasibility studies for the development of a green hydrogen production project in the Kingdom of Saudi Arabia for export purposes.
The cooperation between the three parties will be a change in the field of reducing carbon emissions and will contribute in the long term to the transfer of knowledge between the Kingdom and the Republic of South Korea, in how much Samsung CT Group is a leading specialized company in engineering construction, trade and commercial investment, while POSCO is one of the largest iron production companies in the Republic of South Korea, of which the Public Investment Fund acquired 38% of the shares in 2015.
On the other hand, POSCO and Samsung CT have signed an important service agreement that includes the technical development of liquid nitrogen for the production and storage of green hydrogen globally in 2021. POSCO works to support and stimulate production projects of hydrogen, as it aims to be among the top ten producers in the world, aims to produce up to 7 million tons of hydrogen in the year 2050 and is currently aiming for a production of half a million tons with investments of KRW 10 trillion by 2030.
Samsung CT is also promoting environmentally friendly energy solutions by developing its green hydrogen business as part of its plans for future growth. Benefiting from his experience in implementing renewable energy projects in Worldwide, in particular in Middle East, which is an important market for its green hydrogen business.
This step is part of the Public Investment Fund’s efforts to develop new and promising sectors in the Kingdom, including the energy sector, in in line with the Fund’s 2021-2025 strategy, as the project will help diversify the Kingdom’s economy to help achieve the Vision 2030 goals. Launch new sustainable sectors in the Kingdom, including renewable energy and waste management sectors.
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