S-Oil is improving its carbon management system in order to achieve net-zero carbon emissions by the year 2050. To adapt to climate change and secure new growth engines, we are developing mid-to-long-term business model development plans and mid-to-long-term investment roadmaps.
S-Oil plans to expand into the full hydrogen sector, from hydrogen production to distribution and sales, as one of its new business domains.
It recently inked four Memorandums of Understanding (MOUs) with Saudi Aramco to boost alternative energy collaboration, including innovative petrochemical technology (TC2C), research and development (R&D) related to low-carbon future energy production, and venture investment.
On the 18th of this month, S-Oil and Saudi Aramco attended the ‘Saudi Arabia-Korea Investment Forum for Smart Innovation & Growth’ hosted at the Ritz-Carlton Hotel in Riyadh, Saudi Arabia’s capital, to address both nations’ energy and industry. The MOU was signed in the presence of government authorities and business leaders.
S-Oil and Saudi Aramco agreed in this memorandum of understanding to import, store, and deliver competitive blue hydrogen and blue ammonia in Korea, as well as to aggressively collaborate in identifying possible collaboration prospects connected to the construction of infrastructure to use them.
They’ll also collaborate on research and development for the domestic introduction and supply of blue hydrogen and blue ammonia.
The Saudi Aramco-S-OIL Blue Hydrogen Cooperation MOU is gaining traction as a win-win paradigm for the two nations, which are establishing themselves as global hydrogen energy producers and consumers.
“We will design and execute an ESG roadmap and green initiatives to guarantee that ESG management is in accordance with the objectives of not just the firm but also all stakeholders and communities,” S-OIL CEO Hussein Al-Qahtani stated in his New Year’s message this year.
In the government’s ‘Hydrogen Leading National Vision’ statement in early October of last year, the government declared its participation in a large-scale clean hydrogen initiative to develop a hydrogen ecosystem.
This partnership will include Samsung C&T and Korea Southern Power.
S-Oil will collaborate with Saudi Aramco, the company’s largest shareholder, to secure and establish clean ammonia production sources in other countries, including exporting competitive blue ammonia produced in Saudi Arabia to Korea, as well as develop hydrogen extraction infrastructure.
It also intends to offer Samsung C&T and domestic power business with clean hydrogen and ammonia mixed fire fuel under a newly inked collaboration agreement.
On its own, S-Oil is projected to meet large-scale hydrogen needs.
It intends to convert existing industrial fuel to hydrogen fuel and inject clean hydrogen into operations like heavy oil cracking and desulfurization.
Last year, OIL secured a 20 percent share in FCI, a next-generation fuel cell business, as part of a strategic working collaboration to join the hydrogen market.
FCI owns over 40 patents related to solid oxide fuel cells (SOFCs).
It wants to establish manufacturing facilities with a capacity of 100 MW or more and expand its business area to the green hydrogen sector with an investment of up to 100 billion won by 2027.
In addition, we struck a deal with Samsung C&T for a “Eco-friendly hydrogen and biofuel business cooperation.”
By efficiently merging the operational know-how and infrastructure amassed by the two firms, including manufacturing facilities and worldwide networks, the two companies will jointly develop the whole value chain hydrogen and biofuel industry.
It intends to create hydrogen infrastructure, expand its hydrogen supply and operation business, and investigate clean ammonia and hydrogen introduction and distribution opportunities in other countries.
At the same time, a sophisticated hydrogen charging station in central Seoul is being considered.
It’s also a member of the Korea Hydrogen Energy Network, a special purpose business set up by relevant sectors to develop hydrogen charging infrastructure for buses and trucks.
S-Oil is actively investing by developing new business models to minimize carbon dioxide emissions, in keeping with the worldwide trend of establishing carbon neutrality.
It has been distributing high-efficiency cook burners to Myanmar for free since 2019, resulting in 10,000 tons of carbon credits each year.
It invested in ‘Gloriantech,’ a Clean Development Mechanism company, last year to improve the quality of life for Bangladeshis while also securing 13,000 tons of carbon credits per year.
In order to reduce carbon emissions, S-Oil converted its Onsan plant’s fuel to LNG in 2018.
