Saudi-based steel maker Bena Steel Industries has extended its deal with UK energy solutions provider Alderley to help accelerate energy transition efforts in the kingdom.

The two parties had previously signed a memorandum of understanding focused on building in-country capability, supply chains and solutions in Saudi’s energy sector. The deal is part of a strategy to support Saudi’s efforts to achieve energy security through hydrocarbon production and the development of new cleaner technologies including hydrogen.

The agreement has just been extended for another six months, Bena Steel said in a disclosure on the Saudi Stock Exchange (Tadawul) on Thursday.

The company also extended for another six months the non-binding agreement it had previously signed to acquire 40% of the shares in Alderley.

Under the first strategic agreement, the two parties will develop joint opportunities in Saudi Arabia’s energy sector, in line with the kingdom’s Vision 2030 plan.

It is expected to position both UK and Saudi firms as leading players in the kingdom’s low-carbon sector.

“This important strategic partnership builds on many years of successful collaboration between Alderley and Bena Steel Industries,” the Saudi firm said in a previous statement.

“The MoU deepens this collaboration further and positions both companies as leading players in the country’s burgeoning low-carbon space.”

(Writing by Cleofe Maceda; editing by Seban Scaria)