S-OIL and Saudi Aramco Sign MOU for Blue Hydrogen Cooperation

Aramco to Actively Cooperate on the 'Shahin Project'

[Asia Economy Reporter Hwang Yoon-joo] S-OIL is strengthening alternative energy cooperation with Saudi Aramco in petrochemical new technologies (TC2C), research and development (R&D) related to low-carbon future energy production, and venture investment.

S-OIL and Saudi Aramco announced on the 19th that they signed four business cooperation MOUs at the 'Korea-Saudi Smart Innovation Growth Forum' held at The Ritz-Carlton Hotel in Riyadh, the capital of Saudi Arabia.

Through the MOUs signed the previous day, S-OIL and Saudi Aramco agreed to actively cooperate in bringing competitive blue hydrogen and blue ammonia into Korea for storage and supply, and to explore potential cooperation opportunities related to infrastructure construction for their utilization. They will also jointly work on R&D for the domestic introduction and supply of blue hydrogen and blue ammonia.

Additionally, the two companies plan to jointly promote the development of new technologies related to hydrogen production and carbon capture, as well as research on carbon-neutral fuels such as e-Fuel and technology development related to plastic recycling.

Last year, S-OIL secured a 20% stake in FCI, a fuel cell venture company, to enter the hydrogen industry. Furthermore, it has actively advanced its hydrogen business by participating in a clean hydrogen project consortium with Samsung C&T and Korea Southern Power. Various measures are also being considered to secure large-scale hydrogen demand, such as converting plant fuel to hydrogen fuel and injecting hydrogen into production processes like heavy oil cracking and desulfurization.

This MOU includes expanding competitiveness in core businesses such as refining, petrochemicals, and lubricants. Saudi Aramco will introduce TC2C (technology that converts crude oil into petrochemical materials), which it developed and commercialized for the first time, into S-OIL’s petrochemical Phase 2 ‘Shaheen Project,’ which is preparing for final investment approval this year. Along with this, they plan to share operational experience of the core facility, the steam cracker.

S-OIL has gained stronger momentum to pursue a growth strategy in preparation for the energy transition era by successfully completing the ‘Shaheen Project’ and expanding its horizon from ‘oil to chemicals.’