CEO Hussain Al-Qahtani of S-Oil.

S-Oil will acquire a stake in FCI, a fuel cell company, to enter the hydrogen business. S-Oil struck a contract to invest in FCI, a fuel cell energy solution provider, the refinery company said on March 7.

S-Oil’s initial investment of acquiring a 20 percent stake in FCI has made it the biggest Korean shareholder.

S-Oil CEO Hussain Al-Qahtani said the investment is just the start of its entry into the hydrogen economy and will lead its sustainable growth.

He stressed that S-Oil will aggressively comply with the government’s efforts to reduce carbon emissions

FCI, a joint venture between Korea and Saudi Arabia, holds about 40 solid oxide fuel cell (SOFC) patents.

FCI has collaborated with diverse companies and research institutes, including Solid Power, an Italian fuel cell company, to develop products suitable in Korea and abroad.

With the latest investment, FCI plans to pour a maximum 100 billion won to build more than 100MW power production facilities and expand its portfolio to the green hydrogen business. FCI plans to enter the foreign fuel cell market, including the Middle East.

Under a contract to supply 150MW fuel cells with its Saudi partner, FCI is developing products for power generation and buildings suiting climate conditions and regulations of the Middle East, an S-Oil official said.

FCI and major institutions join forces in developing micro-grid convergence products, designed to make up for renewal energy production fluctuations, and off-shore fuel cells for ships, the official said.

FCI CEO Lee Tae-won said, “The Middle Eastern market has a competitive edge in gas prices, so fuel cell power generation can reach grid parity without government subsidies.”

FCI also plans to localize major parts by 2027 to ramp up its business competitiveness, and it is expected to have business synergetic effects with S-Oil, Lee said.

Meanwhile, S-Oil Vice Presidents Bang Joo-wan and Kang Min-soo were promoted to chief financial officer and the audit division director, respectively.

Last December, S-Oil announced Vision 2030, a long-term growth strategy that aims to maximize the profitability of existing businesses, such as refining, petrochemical and lube, while also pushing for new businesses, including hydrogen, fuel cell and recycling, to achieve sustainable growth.

President Ryu Yeol of S-Oil and FCI President Lee Tae-won each hold a certificate of a contract to invest in FCI, a fuel cell energy solution provider, after signing the deal at S-Oil headquarters on March 7.

S-Oil Recognized as Most Honored Company For 5th Consecutive Year

S-Oil topped the filling station category of 2021 Most Honored Company Awards for the fifth consecutive year. The Most Honored Company Awards was organized KMAC.

KMAC selects and awards excellent brands which have contributed to the development of industries based on criteria such as business performances, brand values and customer satisfaction, as well as eco-friendliness and social contributions. S-Oil made a list of the top 30 excellent companies for the third year in a row.

S-Oil crewmembers, wearing a smart helmet, look into facilities at an S-Oil plant. (Photos: S-Oil)