Saudi Arabia's Public Investment Fund (PIF) announced on Tuesday that it had signed a tripartite memorandum of understanding (MoU) with South Korean steelmaker POSCO and contractor Samsung C&T to develop an export-oriented green hydrogen project in the Kingdom.

The signing took place on the sidelines of the Saudi-Korean Investment Forum, the state-owned Saudi Press Agency said in a report, adding that the MoU also covers the implementation of a feasibility study for the project.

PIF Deputy Governor and Head of MENA Investments Yazeed Alhumied said the MoU is in line with the sovereign fund's plans to expand investments in green hydrogen and contribute to achieving the Kingdom's target of reaching net-zero by 2060.

In November 2021, Samsung C&T and Posco had signed an MoU to develop overseas green hydrogen production facilities, build infrastructure for hydrogen storage and develop technologies related to liquefied hydrogen.

In the same month, Cho Ju-ik, the head of the hydrogen business at Posco, told The Korea Herald in an interview that when Posco's hydrogen-based steelmaking technology is fully commercialised in 2050, the company will need 3.7 million metric tonnes of green hydrogen. To secure a stable supply of green hydrogen at a cheap price, he said Posco would establish green hydrogen production bases in Australia, India, the Middle East, and Southeast Asia.

(Writing by Senthil Palanisamy; Editing by Anoop Menon)

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