Utilizing Gwangyang LNG Terminal to produce and supply hydrogen to Gwangyang Steelworks and others
Taking a significant first step toward supplying 1.26 million tons of clean hydrogen to Korea by 2035
POSCO Group has joined hands with ADNOC, an oil corporation run by Abu Dhabi, UAE, and jumped into the clean hydrogen business to the full extent.
On the 30th, at the head office of ADNOC in Abu Dhabi, POSCO INTERNATIONAL (Vice-chairman Jeong Tak) signed a ‘Strategic Cooperation Agreement (SCA) for a Joint Investigation of Clean Hydrogen Production Business’ with POSCO Holdings and ADNOC.
According to this agreement, the three companies will jointly propel ▲ the production and supply of hydrogen using LNG and ▲ the CCS business, which captures and stores carbon emitted during hydrogen production.
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.
*To be considered clean hydrogen, there should be 4kg or less CO2 byproduct when producing 1kg of hydrogen. Hydrogen meets this regulation.
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.
On this day, Lee Jun-Hyuk, Head of Energy Division at POSCO INTERNATIONAL, said that “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.” He added, “We will provide clean hydrogen stably to not only Gwangyang, but also Yeosu, Hadong, and other nearby industrial districts to make a contribution to the development of Korea’s hydrogen business.”
