Aramco & Korea to develop low-carbon solutions

The Saudi Arabian Oil Company (Aramco), one of the largest companies in the world, said January 19 it had signed agreements with Korean companies to advance downstream strategy and develop low-carbon energy solutions.

The signing of one agreement and nine Memoranda of Understanding (MoU) was announced at the Saudi-Korean investment forum in Riyadh.

The agreements include  MoUs with Korean energy companies KEPCO, S-Oil, POSCO, Hyundai Oilbank, H2Korea and Lotte Chemical to develop low-carbon energy solutions.

Aramco is looking for collaboration in the supply, transportation, utilisation and certification of hydrogen and ammonia. The companies also plan to study the feasibility of ammonia back-cracking – converting ammonia into hydrogen.

A large-scale production facility for hydrogen and ammonia could be in the works for Saudi Arabia, which would also include a carbon capture and storage (CCS) facility.

The company also signed a heads of terms agreement with the Export-Import Bank of Korea to explore financing solutions for Aramco’s business activities involving Korean companies.

“Our partnership with Korean companies spans decades and today we are pleased to broaden these ties in technology, manufacturing and finance,” Aramco president Amin Nasser said. “In addition to focusing on cutting-edge development in a range of areas, they also support our shared goal of finding climate solutions and lowering greenhouse gas emissions through the development of low-carbon hydrogen and ammonia production, as well as carbon capture and storage.” 

Other MoUs in the area of finance and investments were signed, including an agreement to collaborate on venture capital investment and start-up financing.

The agreements seek to deepen collaboration between Aramco and leading Korean companies to unlock new opportunities in the fields of advanced technology, manufacturing and finance.