South Korean utility Kepco has signed a memorandum of understanding (MoU) with Saudi sovereign wealth fund PIF, state-owned Korea National Oil Corporation, utility Korea Southern Power, technology firm Samsung C&T and steel firm Posco Holdings to develop a 1.2mn t/yr green ammonia project in Saudi Arabia. 

The firms have identified a good location for the plant through a pre-feasibility study and will advance the project further next year.

The South Korean firms aim to participate in the entire ammonia value chain—including production, conversion and transport.

Kepco will use the green ammonia to co-fire with coal in power plants. The firm, which is majority owned by the South Korean state, aims to use 5-10mn t/yr of green ammonia for power generation by 2030.

1.2mn t/yr – Potential size of new Saudi project

Kepco has already signed an MoU to explore the potential to develop large-scale green hydrogen and ammonia production projects with Saudi utility Acwa Power.

Acwa is already working with Posco to jointly explore the development of green hydrogen and ammonia projects to supply Posco’s power generation and steelmaking operations.

Building out

Acwa is developing the $5bn Neom green ammonia plant in Saudi Arabia with US industrial gases company Air Products and is looking to develop another project based on the Neom model.

Cop27 has seen a number of MoUs announced on hydrogen as importers such as South Korea, Japan and the EU seek to build their value chains.

Saudi energy firm Saudi Aramco and Indonesia NOC Pertamina recently added to the list of MoUs, agreeing to conduct a pre-feasibility study on the development of a clean ammonia and hydrogen value chain, including potential carbon capture, utilisation and storage at Pertamina’s existing facilities.

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Author: Tom Young