South Korean oil refiner S-Oil announced Thursday that it has joined forces with Shinhan Bank to bolster its transition to achieving net-zero carbon dioxide emissions.

Under a memorandum of understanding signed by the two on Wednesday, the Korean lender will support S-Oil in reducing its carbon footprint in the refining industry, one of the key contributors in global greenhouse gas emissions.

As the industry is calling for prompt action to tackle carbon emissions, the agreement will be an opportunity for S-Oil to rise to the forefront of energy transition, the company said.

The two will also cooperate to boost eco-friendly business, such as securing government funding for the oil refiner’s plan to build sustainable infrastructure for hydrogen, biofuel, and fuel cells technologies.

Dubbed the Shaheen Project, S-Oil is constructing the nation's largest petrochemical plant in the city of Ulsan with an investment of $7 billion, which started earlier this year in March.

By converting low-value crude into value-added petrochemicals, the oil refiner would be able to establish green energy production lines and diversify its business portfolio, the company added.

“Thanks to the reliable ESG financial support, we are able to promote investments on realizing diverse plans for sustainable growth without hesitation,” said S-Oil in a statement.

“While turning profits from existing business, we will keep pace with the global green wave by bringing down carbon emissions with renewable energy.”