S-OIL Signs Letter of Intent to Purchase Low-Carbon Ammonia with Aramco

S-OIL has signed a Letter of Intent (LOI) to purchase low-carbon ammonia with global integrated energy and chemical company Aramco as part of its efforts to revitalize the domestic hydrogen economy.

This LOI strengthens the hydrogen supply chain cooperation Memorandum of Understanding (MOU) signed by the two companies last year and includes a cooperation plan to supply and utilize low-carbon ammonia produced in Saudi Arabia to Korea.

Aramco plans to produce low-carbon ammonia applying carbon capture and storage (CCS) technology, and S-OIL plans to import it, convert it into hydrogen, and use it in its own greenhouse gas reduction efforts and related business development.

S-OIL Anwar Al Hizazi CEO.

Ryu Yeol, President in charge of Strategic Management at S-OIL, said, “We will be able to help build the domestic hydrogen industry by realizing the introduction of low-carbon ammonia.”

S-OIL has declared its entry into the hydrogen industry and has actively implemented management strategies to respond to climate change and secure new growth engines, including equity investment in FCI, a hydrogen fuel cell specialized company, and signing a partnership agreement for eco-friendly hydrogen business with Samsung C&T.

Building on this LOI, S-OIL plans to strengthen the establishment of domestic infrastructure for the introduction of low-carbon ammonia, related demand, and business development activities in the future.

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