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PIF and Marubeni expand hydrogen scope

1 November 2023

The Saudi sovereign wealth fund and Japan's Marubeni Corporation are expanding the scope of discussions for a planned green hydrogen and derivatives production facility in Saudi Arabia.

MEED reported in March this year that the Public Investment Fund (PIF) and Marubeni had signed a memorandum of understanding (MoU) to explore the development of a green hydrogen project in the kingdom.

According to a source close to the project, the green hydrogen-based derivatives and products being explored by both parties may now include green ammonia, sustainable aviation fuel and green steel, among others.

Initially, the parties were looking at producing green hydrogen made from renewable energy and other types of low-carbon hydrogen.

"Under the framework of this MoU, Marubeni and the PIF will initially conduct a feasibility study for producing clean hydrogen in Saudi Arabia, with the aim of supplying clean hydrogen to both domestic and international markets," Marubeni said in a statement when the MoU was announced in March.

It is the second green hydrogen project that Marubeni is exploring in the GCC. The firm is involved in the Masdar City green hydrogen project in Abu Dhabi in partnership with Germany's Siemens Energy, France's TotalEnergies and the UAE's Masdar.

It is also the second green hydrogen project that PIF is exploring with an Asian developer or team.

In November last year, PIF signed an MoU with South Korean companies Korea Electric Power Corp (Kepco), Korea Southern Power Company, Korea National Oil Corporation, Posco Holdings and Samsung C&T Corporation to build and operate a green hydrogen-based ammonia production facility.

The South Korean team plans to develop a $6.5bn integrated green hydrogen and ammonia complex in Yanbu. It has completed the pre-feasibility study on the project and is expected to proceed with a detailed feasibility study soon.

The proposed facility will be built between 2025 and 2029 on a land area in Yanbu measuring 396,694 square metres.

It is expected to produce 1.2 million tonnes of green ammonia annually for 20 years and will be worth about $6.5bn.

PIF is exploring a third green hydrogen project with French utility developer and investor Engie.

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Jennifer Aguinaldo

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