Expansion of Partnership between Korea and UAE: Moving from Nuclear Power Plant Exports to Clean Hydrogen Production

Korea and UAE Strengthen Energy Cooperation with Focus on Clean Hydrogen and Nuclear Power

In a significant move towards enhancing their energy security cooperation, Korea and the United Arab Emirates (UAE) have expanded their partnership to include the production of clean hydrogen and joint development of nuclear power plants in third countries. This development comes as part of a broader agreement reached during a summit between Korean President Yoon Suk-yeol and UAE President Muhammad bin Zayed Al Nahyan on May 29.

The two countries have agreed to bolster their cooperation in various sectors, including industry, trade, and energy. In addition to signing the Comprehensive Economic Partnership Agreement (CEPA), they also inked a memorandum of understanding (MOU) on carbon capture and storage (CCS) cooperation. This MOU aims to pave the way for building a clean hydrogen supply chain and addressing carbon reduction issues jointly.

One of the key highlights of the agreement is the collaboration between Korea Electric Power Corporation (KEPCO) and the Emirates Nuclear Energy Corporation (ENEC) to explore opportunities for the joint development of nuclear power plants in third countries. This partnership builds on the trust established between the two countries in the field of nuclear power, particularly after Korea’s successful export of the Barakah Nuclear Power Plant in 2009.

During the UAE President’s visit to Korea, both countries also expressed interest in further cooperation in the construction of additional nuclear power plants, nuclear fuel supply chains, and small modular reactors (SMRs). This signifies a commitment to advancing clean energy solutions and expanding their presence in the global nuclear power market.

Moreover, a consortium comprising Korea National Oil Corporation (KNOC), Samsung E&A, and GS Energy has signed a strategic agreement with Abu Dhabi National Petroleum Corporation to jointly develop and produce clean hydrogen. This collaboration includes the implementation of a blue ammonia project in the Ruwais region of the UAE, focusing on the entire value chain of hydrogen production and distribution.

In addition to the energy sector, Korean companies have also secured agreements in other industries. Samsung Heavy Industries and Hanwha Ocean have signed letters of intent with Abu Dhabi National Oil Corporation to build LNG carriers, potentially worth around US$1.5 billion. This partnership highlights Korea’s expertise in shipbuilding and its commitment to supporting the UAE’s energy infrastructure development.

Furthermore, Korea and the UAE are set to expand their joint crude oil stockpiling project, with discussions underway to increase the current storage capacity of 4 million barrels. This initiative, aimed at enhancing energy security and emergency response capabilities, underscores the strategic partnership between the two countries in the oil sector.

Overall, the enhanced cooperation between Korea and the UAE in clean energy production, nuclear power development, and oil industry collaboration signifies a significant step towards sustainable energy solutions and mutual economic growth. With a focus on innovation and strategic partnerships, both countries are poised to make a positive impact on the global energy landscape.