South Korean oil refiner S-Oil announced Wednesday that it has signed a letter of intent with Saudi Aramco, Saudi Arabia's state oil giant, to secure low-carbon ammonia and contribute to the nation’s hydrogen industry.
Following last year’s agreement to build a hydrogen supply chain between the two companies, the new partnership aims to confirm their will to support global decarbonization efforts.
Under the letter of intent, S-Oil plans to import low-carbon ammonia from Saudi Arabia and convert it into hydrogen as a fuel for power generation, as part of efforts to achieve Korea's net-zero goals.
Low-carbon ammonia is produced with carbon capture and storage technology, which reduces emissions from the manufacturing process and is stored deep underground.
With the upgraded partnership with Saudi Arabia, the Korean oil refiner will gain momentum to build related infrastructure and nurture new business opportunities in the energy transition era.
“The introduction of low-carbon ammonia can help realize zero greenhouse gas emissions and pave the way for the nation’s hydrogen industry,” said S-Oil President Ryu Yul.
Separately, S-Oil is ramping up its presence in the hydrogen industry by investing in the energy solution provider Fuel Cell Innovations and seeking partnerships with Samsung C&T to tackle climate change.
