Hyundai Oilbank Signs Agreement with Aramco on Ammonia Utilization and Introduction

[Asia Economy Reporter Choi Dae-yeol] Hyundai Oilbank announced on the 21st that it has signed a Memorandum of Understanding (MOU) with Saudi Arabia's state-owned oil company Aramco for a feasibility study on the utilization of ammonia. According to the MOU between the two companies, they will assess whether ammonia is suitable as a low-carbon fuel source and have the opportunity to secure long-term supply from Saudi Arabia.

Ammonia, along with hydrogen, is considered one of the future eco-friendly fuels and is already widely used as a primary raw material for fertilizers and nitric acid. It has a global transportation infrastructure in place, making it more practical than hydrogen. Hydrogen must be maintained at an ultra-low temperature of minus 253°C during transport, whereas ammonia can be stored at minus 34°C. The signing ceremony held on the 18th (local time) was attended by Hyundai Oilbank CEO Joo Young-min and Olivier Torel, Vice President of Aramco's Chemicals Division, among others.

CEO Joo said, "Through the introduction of ammonia, we will also contribute to expanding the global low-carbon fuel ecosystem." Vice President Olivier stated, "We hope this agreement will provide opportunities to develop the application and business potential of low-carbon fuel sources and play an important role in Korea's energy transition."

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