S-OIL Supplies Blue Ammonia Domestically... Joins Clean Hydrogen Consortium

Building Clean Ammonia Infrastructure in Collaboration with Aramco

[Asia Economy Reporter Hwang Yoon-joo] S-OIL is leading the activation of the hydrogen economy by participating in a large-scale clean hydrogen project to create a hydrogen ecosystem. S-OIL, in cooperation with its major shareholder Saudi Aramco, is establishing infrastructure for securing overseas clean ammonia production sources, importing, and hydrogen extraction, including supplying competitively priced blue ammonia produced in Saudi Arabia to the domestic market. Additionally, S-OIL plans to supply clean hydrogen and ammonia mixed firing fuel to domestic power companies in partnership with Samsung C&T, with whom it recently signed a partnership agreement.

S-OIL announced its participation in the clean hydrogen project consortium at the recent government announcement of the 'Hydrogen Leading Nation Vision.' The consortium includes Samsung C&T and Korea Southern Power among others.

S-OIL is also expected to secure large-scale hydrogen demand independently. It plans to convert existing plant fuels to hydrogen fuel and introduce clean hydrogen into production processes such as heavy oil cracking and desulfurization.

With its participation in this clean hydrogen project consortium, S-OIL is taking a further step into the hydrogen economy. Earlier this year, S-OIL secured a 20% stake in FCI, a next-generation fuel cell venture company, establishing a strategic partnership for entry into the hydrogen industry. FCI holds over 40 patents for solid oxide fuel cells (SOFC) and plans to expand its business area to include green hydrogen by building production facilities with a capacity of over 100MW through investments of up to 100 billion KRW by 2027.

On the 17th of last month, S-OIL signed an ‘Eco-friendly Hydrogen and Biofuel Business Partnership Agreement’ with Samsung C&T. As an energy chemical company equipped with world-class crude oil refining and petrochemical facilities, S-OIL and Samsung C&T will effectively combine their accumulated operational know-how and infrastructure, including production facilities and global networks, to jointly develop the entire value chain of hydrogen and biofuel businesses. They will develop hydrogen infrastructure, hydrogen supply and operation businesses, and explore the import and distribution of overseas clean ammonia and hydrogen.

An S-OIL official stated, "We are advancing our carbon management system aiming to achieve net zero carbon emissions by 2050, and to respond to climate change and secure new growth engines, we plan to enter and expand participation in the entire hydrogen industry from production to distribution and sales."

This content was produced with the assistance of AI translation services.