November 26, 2024

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Deputy Minister of Investment of Saudi Arabia Badr AlBadr (left) exchanges a handshake with Hyundai Motor President Jang Jae-hoon during the memorandum of understanding signing ceremony held in Riyadh, Saudi Arabia, Sunday. (Hyundai Motor Company)

Hyundai Motor Company said Monday that it is set to launch a hydrogen mobility ecosystem in Saudi Arabia, in step with the kingdom's pivot away from its traditional oil-centric economy.

Upon President Yoon Suk Yeol's state visit to the Middle East, the Korean carmaker signed a memorandum of understanding on Sunday in Riyadh with three entities -- Air Products Qudra, a joint venture between Sau Air Products and Qudra Energy; SAPTCO, a Saudi public bus company; and the Korea Automotive Technology Institute.

Under the new partnership, the parties agreed to combine their resources and expertise to create a hydrogen-based mobility value chain in the region.

Hyundai will supply hydrogen-powered electric buses to SAPTCO, while Air Products Qudra will establish a comprehensive business system catering to hydrogen production, charging, and operations.

The Korea Automotive Technology Institute will identify Korean small and mid-size enterprises to participate in the project and explore research and development opportunities.

Specific areas of cooperation outlined in the memorandum include the development of a hydrogen mobility environment; a hydrogen-electric bus demonstration project; and participation in government-funded research programs.

Saudi Arabia has shown a significant inclination toward sustainable energy solutions, as evident from its “Vision 2030” strategy and the “Saudi Green Initiative” aimed at achieving zero carbon emissions by 2060.

This collaboration aligns with these initiatives and is a response to the direct request for cooperation in the field of hydrogen made by Saudi Arabia's Energy Minister Abdulaziz bin Salman Al Saud to a Korean government delegation earlier this year.

“We are laying the groundwork for a thriving hydrogen ecosystem right here in Saudi Arabia to help drive the nation toward a future free from vehicle emissions,” said Hyundai Motor CEO Jang Jae-hoon.

By Moon Joon-hyun  (mjh@heraldcorp.com)