S-OIL, led by CEO Anwar A. Al-Hejazi, announced on Oct. 25 that it has signed a letter of intent (LOI) with Saudi Arabia's national oil company Aramco to purchase low-carbon ammonia.
The LOI builds on a memorandum of understanding (MOU) signed last year between the two companies to collaborate on building a hydrogen supply chain and outlines plans to supply and utilize low-carbon ammonia produced in Saudi Arabia to South Korea.
Aramco plans to produce low-carbon ammonia using carbon capture and storage (CCS) technology, and S-OIL will import it and convert it into hydrogen, which will be utilized for its own greenhouse gas reduction efforts and for the development of linked businesses.
"We will be able to realize the introduction of low-carbon ammonia to the domestic market, which will help S-OIL's greenhouse gas reduction efforts and build the domestic hydrogen industry," said President Ryu Yeol, who is in charge of strategic management at S-OIL.
S-OIL has been actively implementing management strategies to respond to climate change and secure new growth engines, including announcing its entry into the hydrogen industry, investing in FCI, a hydrogen fuel cell company, and signing a partnership agreement with Samsung C&T for an eco-friendly hydrogen business.
Based on this LOI, the company plans to build infrastructure for the domestic introduction of low-carbon ammonia and strengthen demand and business development activities.
