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| Hyundai Motor Group Executive Vice Chairman Chung Euisun, left, and Saudi Aramco CEO Amin Nasser sign an MOU over their comprehensive partnership on hydrogen energy during a ceremony at the Conrad Hotel on Yeouido, Seoul, Tuesday. Courtesy of Hyundai Motor |
Hyundai Heavy, SK enhance ties with Saudi Arabia
By Nam Hyun-woo
Hyundai Motor will team up with Saudi Aramco over the use of hydrogen energy, taking an opportunity in the competition between global energy and carmakers by partnering with the world's largest crude company, according to industry officials Wednesday.
The partnership came amid Saudi Arabian Crown Prince Mohammed bin Salman's visit to Korea, which was followed by a number of other Korean companies signing deals worth $8.3 billion with government bodies and private firms of the kingdom.
According to the automaker, Hyundai Motor Group Executive Vice Chairman Chung Euisun and Saudi Aramco CEO Amin Nasser signed an MOU on their comprehensive partnership in sharing technologies over hydrogen fuel cell electric vehicles (FCEV) and other futuristic cars.
The company said the MOU is aimed at "accelerating expansion of a hydrogen ecosystem in the Korean and Saudi Arabian markets, and exploring the use of advanced non-metallic materials in various fields including the automotive industry."
Also, the two companies agreed to grow awareness of Hyundai's FCEVs in Saudi Arabia, as well as expand the use of carbon fibers and carbon fiber-reinforced plastics.
"The collaboration of Hyundai Motor and Saudi Aramco will accelerate progress toward a hydrogen society by expanding access to a robust hydrogen infrastructure and FCEVs," Chung said. "Both businesses are leaders in the hydrogen value chain, and our collaboration will support global action for a better, more sustainable future, while exploring future automotive businesses and technologies."
Industry officials said their partnership came amid state-owned Aramco's bid to expand its portfolio from oil to future technologies and renewable energies, while Hyundai Motor Group is striving to consolidate its leading status in the carmakers' competition on hydrogen cars.
"Prince Mohammed bin Salman is leading Saudi Arabia's attempts to shift its economic reliance from oil to future technologies," an industry official said. "The partnership seems to be in line with such efforts."
Last week, Aramco opened the first hydrogen fueling station near its headquarters in Dhahran, in a partnership with Air Products of the U.S.
Nasser said "the project demonstrates the potential of hydrogen in the transport sector and its viability as a sustainable fuel for the future" and "Saudi Aramco continues to be focused on creating breakthrough technologies and solutions as part of our long term efforts to reduce carbon emissions and address climate concerns."
Along with the partnership with Hyundai Motor Group, Aramco has signed a deal with Hyundai Heavy Industries to jointly invest $420 million in building a ship engine plant in the King Salman Global Maritime Industries Complex in Saudi Arabia. Also they agreed to set up a joint venture for after-sales service of ships.
Of Korean companies that signed deals with Saudi Arabia amid the crown prince's visit, refiner S-Oil logged the largest deal, announcing a 7 trillion won ($6 billion) plan to build new petrochemical facilities in Ulsan in an MOU with Aramco.
SK Gas, an LPG distributor of SK Group, signed two MOUs with Advanced Global Investment Company, which is a subsidiary of Saudi Arabia's Advanced Petrochemical Company, in launching a feasibility test over building multiple polypropylene plants in Jubail, Saudi Arabia. The combined worth of the construction project is $1.84 billion.
Amid the prince's visit to Korea, Hyosung, GS Holdings, Hyundai Oilbank, Samsung Bioepis, Industrial Bank of Korea, SK Global Chemical and Korea National Oil Corp. also signed deals with their Saudi Arabian partners and their ministries, with some of them delivered during a press conference held by Saudi Arabian General Investment Authority (SAGIA).
"With stronger ties, Saudi Arabian businesses will benefit from Korean companies' expertise in various fields, while Korean partners will enjoy opportunities to tap into strong market fundamentals of Saudi Arabia," SAGIA Deputy Governor Sultan Mofti said.
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