Australian energy major Woodside has signed a non-binding memorandum of understanding (MoU) with SK E&S, a part of South Korean conglomerate SK Group, to enable studies on the potential development of a lower-carbon hydrogen value chain, including hydrogen, ammonia and other related products.

According to Woodside, under the MoU, the two parties plan to jointly explore opportunities relating to long-term ammonia and hydrogen offtake arrangements, equity participation in ammonia and hydrogen production projects and project engineering supply opportunities.

In addition, the companies will consider existing and proposed government policies of South Korea and Australia that could help facilitate lower-carbon hydrogen value chain development, Woodside noted.

Shaun Gregory, Woodside Executive Vice President New Energy, said the MoU reflects the increasing demand for large-scale decarbonized energy solutions such as lower-carbon hydrogen and ammonia from Woodside’s industry partners in the Asia Pacific region, adding that the company is well positioned to play a key role in the development of the hydrogen and ammonia value chain for partners in South Korea.

“This collaboration will help inform our development of the new energy products and services which could support our customers’ decarbonization, unlock new market opportunities and support the broader Asia Pacific region in their climate goals and net zero aspirations,” Gregory stated.

To remind, in April 2023, Woodside signed a non-binding heads of agreement (HoA) with Keppel Data Centres, the data center arm of Keppel Corporation, to evaluate the potential supply of liquid hydrogen to Singapore from Woodside’s production facilities, providing a pathway for the parties to jointly develop further commercial principles for key hydrogen supply chain agreements.

As for SK E&S’ hydrogen-related endeavours, at the end of 2023, the company partnered with GE Vernova, Air Liquide Engineering & Construction, Chungcheongnam-do Government, and Korea Midland Power (KOMIPO) for the construction of the largest low-carbon hydrogen plant in Korea.