Ryu-yeol (left), president of S-Oil and Itae-won, CEO of FCI, are taking commemorative photos after signing an investment contract at S-Oil headquarters in Mapo-gu, Seoul on the 5th. S-Oil provided
S-OIL will enter the hydrogen business by investing in a next-generation fuel cell company jointly by Korea and Saudi Arabia. S-OIL’s long-term goal is to cover the entire hydrogen industry from production to distribution and sales as one of the new businesses as the growth of the refinery industry has reached its limit.
S-OIL announced on the 7th that it has secured a 20% stake in FCI, which provides clean energy solutions based on fuel cells. S-OIL, which has become the largest domestic shareholder of FCI through a strategic stake purchase, is launching its hydrogen business in earnest in a strategic partnership with FCI.
At the investment contract signing ceremony on the 5th, CEO Al Qatani S-Oil said, “I expect that investment in the overall hydrogen economy will lead to sustainable growth.” ”
Currently, S-OIL is promoting business using green hydrogen and green ammonia, as well as production and distribution of liquefied hydrogen through cooperation with Saudi Aramco, a major shareholder. It is also considering introducing a complex hydrogen charging station in downtown Seoul.
FCI, a joint venture between Korea and Saudi Arabia, which holds 40 solid oxide fuel cell (SOFC) patents, is building cooperative relationships with various companies and research institutes, including Solid Power, an Italian fuel cell company, for open innovation. FCI plans to build a production facility of 100 megawatts (mW) or more through an investment of up to KRW 100 billion by 2027 and expand its scope to the green hydrogen business.
A fuel cell that produces electricity by chemically reacting hydrogen with oxygen in the air is a key device in the hydrogen economy. It is more energy efficient than thermal power generation and has a greater effect of reducing greenhouse gases because there is no chemical combustion. In particular, SOFCs are fuel cells that operate at the highest temperatures. Its power generation efficiency is better and its size is smaller than that of conventional fuel cells, so its utility value is attracting attention for houses, buildings, and power generation businesses.
Together with S-OIL, FCI plans to advance into the overseas fuel cell market including the Middle East market as well as in Korea. Currently, in cooperation with Saudi partners, it is developing products for power generation and buildings that meet climate conditions and legal regulations in the Middle East market. FCI CEO Itaewon said, “Middle East is an attractive market because fuel cell power generation can reach grid parity without government subsidies because of its high gas price competitiveness.” It is expected to have a synergy effect with S-OIL.”
Reporter Kim Chang-hoon [email protected]
News directly edited by the Hankook Ilbo can also be viewed on Naver.
