In a significant stride towards a more sustainable energy future, South Korea’s largest trading company, POSCO International, announced its ambitious strategy to build a green hydrogen supply infrastructure capable of producing 1.26 million tons annually by 2035.
Revealed at the inaugural 2023 Energy Business Value Day, a forum designed to bolster communication with domestic and overseas investors and analysts, this expansive plan envisages infrastructural developments across Incheon Metropolitan City, Gwangyang City in Jeollanam-do, and Pohang City in Gyeongsangbuk-do.
At the Incheon liquefied natural gas (LNG) combined cycle power plant, POSCO International plans to install hydrogen infrastructure for co-firing. This project is projected to supply 360,000 tons of green hydrogen every year. In Gwangyang, the company has set its sights on transforming the existing LNG terminal into a multifunctional terminal capable of processing hydrogen and ammonia. This conversion will enable the handling of an impressive 540,000 tons of green hydrogen annually.
The company’s strategy extends to Pohang City, where it intends to establish a clean hydrogen infrastructure in conjunction with POSCO’s Hydrogen-based Reduction Ironmaking (HyREX) that can produce 360,000 tons of green hydrogen per annum.
However, POSCO International’s green energy vision transcends hydrogen. The company also plans to venture further into the realm of renewable energy, with a target to secure more than two gigawatt-scale offshore wind power business rights by 2030. The goal is to cement the company’s position as South Korea’s leading renewable energy business.
With a clear commitment to LNG, green hydrogen, and renewable energy as its core sectors, POSCO International is setting aside a significant 3.8 trillion won ($2.9 billion) for investment in its energy business over the next three years.
POSCO International’s plan aligns with the global transition towards cleaner and more sustainable energy sources, showcasing how corporations can play a crucial role in combating climate change. As nations worldwide endeavor to meet their commitments under the Paris Agreement, this ambitious green hydrogen initiative represents not only an investment in South Korea’s future but also a significant contribution to global decarbonization efforts.
