S-OIL Signs MOU with Shinhan Bank for Low-Carbon Transition ESG Financial Support

S-OIL CEO Anwar Al Hizaji (right) and Shinhan Bank President Jung Sang-hyuk are posing for a commemorative photo after signing the 'ESG Financial Support Agreement for Low-Carbon Transition.' Photo by S-OIL

S-OIL is taking a full-scale step toward low-carbon transition by partnering with Shinhan Bank.

On the 18th, S-OIL announced that it signed an 'ESG Financial Support Agreement for Low-Carbon Transition' with Shinhan Bank at Shinhan Bank's headquarters located in Jung-gu, Seoul, to lead competitive low-carbon energy businesses. Through this MOU (Memorandum of Understanding), S-OIL and Shinhan Bank plan to jointly respond to the climate crisis and cooperate on low-carbon transition through competitive financial support.

Additionally, S-OIL and Shinhan Bank will mutually cooperate on various eco-friendly businesses in the future. In particular, they agreed to communicate to secure policy funds for new eco-friendly facilities currently being developed by S-OIL, such as hydrogen, biofuels, and fuel cells.

This MOU signing is the result of several months of discussions between the two companies to efficiently respond to the increasingly important climate change crisis. It mainly focuses on supporting S-OIL's low-carbon transition projects, which belong to the refining industry, a sector with high carbon emissions.

S-OIL is promoting the 'Shaheen Project,' the second phase of its petrochemical project, aiming for completion in 2023. Through the Shaheen Project, S-OIL plans to expand its petrochemical business beyond its fuel oil-centered operations, transforming the corporate structure and establishing an outstanding low-carbon production system with high energy efficiency compared to peers in the industry. Furthermore, it is progressively working on improving energy efficiency in existing facilities and entering eco-friendly new energy businesses such as hydrogen.

An S-OIL representative stated, "Through ESG financial support, S-OIL can stably promote various investment projects to respond to the energy transition era and achieve sustainable growth." The representative added, "While maximizing profitability in existing business areas, we will actively pursue new energy-related businesses such as hydrogen, fuel cells, and recycling to realize social value and keep pace with eco-friendly trends."

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