S-OIL signed four MOUs with Saudi Aramco for collaboration on alternative energy business, which includes thermal crude to chemicals (TC2C) technology, R&D on the production of lower carbon future energy, and investments in venture capital.
The two companies signed the MOUs at the Saudi Arabia-Korea Investment Forum for Smart Innovation & Growth, held in Riyadh, the capital city of Saudi Arabia, at the Ritz-Carlton Riyadh with the presence of government officials of energy, industry ministries and business representatives from both countries.
Going forward, S-OIL and Saudi Aramco are set to actively explore potential cooperation in building infrastructure to store, supply, and utilize competitive blue hydrogen and blue ammonia after bringing them into Korea.
The cooperation includes R&D on import and supply of blue hydrogen and ammonia.
Moreover, both companies aim to pursue the production of hydrogen, the development of new carbon capture technology, plastic recycling technology as well as research on carbon neutral e-Fuels.
Other areas of cooperation include potential joint investments into domestic venture companies specialized in new energy technology or de-carbonization to pursue relevant and new technologies.
S-OIL is looking to lead domestic hydrogen ecosystem with its expansion into hydrogen business.
The MOUs signed by Saudi Aramco and S-OIL on blue hydrogen are a win-win model for countries that are aiming to solidify their positions as global hydrogen energy producers and consumers.
“We articulated an ESG Roadmap and Green Initiative, to make sure our ESG practices not only serve S-OIL well but also all our stakeholders and communities at large.” said Hussain A. Al-Qahtani, the CEO of S-OIL in his New Year speech.
Last year, S-OIL bought a 20 percent stake in fuel cell venture company FCI to make inroads into the hydrogen business.
Additionally, it participated in the clean hydrogen project consortium with Samsung C&T and Korea Southern Power Co., Ltd (KOSPO) to accelerate its hydrogen business in full swing.
Moreover, S-OIL works various fronts to secure sizable amount of demand by switching into Hydrogen fuel for the plant and putting hydrogen in the process of middle distillate cracking and desulfurization.
A view of S-OIL’s Ulsan plant.
Stronger Cooperation for Phase 2 Petrochemical Project Shaheen
The MOUs also aim at enhancing the competitiveness of S-OIL’s key business areas such as oil refining, petrochemical and lube base oil.
S-OIL is planning to apply TC2C, which is developed and to be commercialized by Saudi Aramco for the first time, to phase 2 of its Shaheen petrochemical project and to share its knowledge on the operation of the steam cracker, its key facility.
Saudi Aramco agreed to proactively collaborate for the successful completion of the project by providing its expertise in R&D of olefin downstream process and petrochemical product.
Final Investment Decision (FID) of the Shaheen project is expected this year after going through Front End Engineering Design (FEED).
If successfully completed, S-OIL will gain momentum to further pursue its growth strategies in the energy transition era by expanding beyond its vision of ‘Oil to Chemicals’.
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