S-OIL invests in fuel cell companies, accelerating entry into the hydrogen market

S-OIL will enter the hydrogen business in earnest by investing in a next-generation fuel cell company.

S-OIL announced on the 7th that it has signed an investment contract with FCI, which provides clean energy solutions based on fuel cells.

S-OIL will become the largest shareholder in Korea by securing a 20% stake as an initial investment in FCI. The two companies plan to establish a strategic partnership to enter the hydrogen industry and promote the hydrogen business.

FCI is a Korea-Saudi joint venture that holds 40 solid oxide fuel cell (SOFC) patents. It is collaborating with Solid Power, an Italian fuel cell company, to develop products suitable for domestic and overseas markets. With this investment, FCI plans to invest up to 100 billion won by 2027 to build a production facility of more than 100MW (megawatt) and expand its business area to the green hydrogen business.

This investment by S-OIL is part of a strategy to achieve the new growth strategy’Vision 2030′. S-OIL decided to maximize the profitability of the existing oil refining, petrochemical, and lubrication businesses while advancing into new business fields such as fuel cells and recycling (recycling).

In particular, it is planning to enter the entire hydrogen industry, from hydrogen production to distribution and sales. In cooperation with Saudi Aramco, the major shareholder, the company is reviewing business using green hydrogen and green ammonia, and production and distribution of liquefied hydrogen.

In addition, it is considering introducing a complex hydrogen charging station in downtown Seoul, and recently, it is participating in Kohygen, a special purpose corporation promoted by related industries to build a hydrogen charging infrastructure for buses and trucks.

Hussein Al Qatani, CEO of S-Oil, said, “This investment is expected to lead the company’s sustainable growth as an investment in the overall hydrogen economy.” “He said.