POSCO International and UAE’s Abu Dhabi National Oil Company (ADNOC) have signed a strategic cooperation agreement (SCA) for a joint investigation of clean hydrogen production business.
The project will be conducted at the Gwangyang LNG Terminal of POSCO INTERNATIONAL. In liaison with the Gwangyang LNG Terminal, POSCO Group will establish a production infrastructure for hydrogen. Starting in 2029, produced hydrogens will be supplied to sources of demands like Gwangyang Steelworks, or other nearby locations such as Hadong and Yeosu.
Additionally, POSCO Group is planning to bring the CCS business in the picture. This is because the process of reducing carbon emission by capturing incidental carbon during the hydrogen production is essential for hydrogen to be considered clean hydrogen. ADNOC is considered to be an excellent partner for this clean hydrogen production business because it is one of the leaders in the field of CCS.
Starting this year, the three companies plan to conduct a joint investigation for project feasibility, looking into the establishment of clean hydrogen production facilities, carbon dioxide capture, and liquefaction terminal.
The fact that this is POSCO INTERNATIONAL’s ‘first official step in a clean hydrogen supply project in Korea’ adds significance to this project. Starting with this project, POSCO Group plans to accelerate its shift into low-carbon production process and establishing a clean hydrogen infrastructure for hydrogen-mixed power generation.
Last year, POSCO Group announced its plan to establish a supply infrastructure that can deliver 1.26 million tons of clean hydrogen by 2035. The group aims to provide 540,000 tons to Gwangyang, 360,000 tons to Incheon, and 360,000 tons to Pohang.
Gwangyang is the core location of POSCO where the group runs the world’s biggest steelworks and has an LNG Terminal that will serve as the clean hydrogen production infrastructure in the future.
…Lee Jun-Hyuk, Head of Energy Division at POSCO INTERNATIONAL, said.
