Hyundai to launch hydrogen business in Saudi Arabia with local firms

Industry

Published: 23 Oct. 2023, 15:14

Hyundai to launch hydrogen business in Saudi Arabia with local firms

Badr Al-Badr, left, Saudi Arabia's deputy minister of investment, and Chang Jae-hoon, Hyundai Motor CEO, pose for a photo during a signing ceremony for the memorandum of understanding for a joint hydrogen business in Riyadh, Sunday. [HYUNDAI MOTOR]

Hyundai Motor signed a multilateral agreement for a joint hydrogen business in Saudi Arabia, the world’s biggest oil producer, the carmaker said Monday.

The quadripartite memorandum of understanding, signed on Sunday in Riyadh during President Yoon Suk Yeol’s state visit to the Middle East country, was joined by Korea Automotive Technology Institute (Katech), Air Products Qudra, and the Saudi Public Transport Company (Saptco).

The goal is to establish a hydrogen ecosystem in Saudi Arabia and join forces to provide resources for a wider adoption of hydrogen mobility.

Air Products Qudra is a joint venture between Air Products, a Pennsylvania-based industrial gas supplier, and Qudra Energy, a Saudi Arabian energy startup. The company handles development and investment projects in the Middle East region.

Saptco is Saudi’s state-owned bus company that manages bus operations in cities including Riyadh and Mecca.

With the signing of the MOU, the four parties will cooperate to run test operations of hydrogen fuel cell buses, establish a hydrogen mobility ecosystem and explore further opportunities for cooperation regarding government support programs in the hydrogen mobility sector.

Hyundai Motor plans to sell or lend hydrogen-powered vehicles to Saptco, while Katech will help Korean companies participate in hydrogen projects in Saudi Arabia and collect data from test runs of hydrogen buses.

Air Product Qudra will secure and establish a hydrogen supply chain in Saudi Arabia, encompassing production, distribution, fueling and hydrogen refueling station operations.

Saptco will collect and share data on hydrogen mobility operations and plans to convert its fleet to hydrogen-powered alternatives, with Hyundai Motor as its strategic partner.

In 2021, Saudi Arabia declared it would achieve net zero carbon emissions by 2060 under its Saudi Vision 2030, which aims to reduce reliance on the traditional fossil fuel industry.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]