S.Korean firms agree to build hydrogen plant in Saudi Arabia -sources (updated)

Korea Electric Power

17/11/2022 01:44

(Adds other agreements, background)
    By Joyce Lee and Heekyong Yang
       SEOUL, Nov 17 (Reuters) - Korea Electric Power Corp
 015760.KS  and others on Thursday signed a memorandum of
understanding with Saudi Arabia's Public Investment Fund to
build and operate a hydrogen and ammonia production plant in
Saudi Arabia, three people told Reuters.
    The project will be worth about $6.5 billion, said one of
the people, who declined to be identified as they were not
authorised to speak with media on the matter.
    The initial agreement coincides with Saudi Arabian Crown
Prince Mohammed bin Salman's visit to South Korea.
    The project built over 2025-2029 will span 396,694 square
metres in Yanbu, Saudi Arabia, produce 1.2 million tonnes of
green hydrogen and ammonia annually for 20 years, and be worth
about $6.5 billion, Yonhap news agency reported earlier on
Thursday, citing industry sources.
    Korea Electric Power Corp (KEPCO), Korea Southern Power Co
Ltd  KEPCOS.UL , Korea National Oil Corp  KOILC.UL , POSCO
Holdings Inc  005490.KS  and Samsung C&T Corp  028260.KS  signed
the agreement, Yonhap reported.
    KEPCO told Reuters it will make an announcement later on
Thursday. Korea National Oil Corp did not have an immediate
comment. POSCO declined to comment. Korea Southern Power and
Samsung C&T could not be reached for comment. 
    The agreement is one of over 20 that South Korean companies
have signed with Saudi Arabian counterparts involving projects
in fields as varied as railways and energy cooperation, South
Korea's industry ministry said in a statement on Thursday.
    They include Hyundai Rotem Co's  064350.KS  memorandum of
understanding with Saudi Arabia to cooperate on a railway
project for the Middle Eastern country's $500 billion NEOM
economic zone, the ministry said.
        South Korean President Yoon Suk-yeol is scheduled to
hold talks with Crown Prince Mohammed on Thursday.
($1 = 1,332.0100 won)
 (Reporting by Joyce Lee and Heekyong Yang; Editing by
Christopher Cushing)
 ((joyce.lee@tr.com;))