- Production of blue hydrogen using Gwangyang LNG Terminal… Supply to customers such as Gwangyang Steel Mill
- This is a significant first step towards the goal of supplying 1.26 million tons of clean hydrogen domestically by 2035
POSCO Group is entering the clean hydrogen business in earnest by joining hands with ADNOC, the Abu Dhabi National Oil Corporation of the United Arab Emirates (UAE).
POSCO International (Vice Chairman Jeong Tak) signed a ‘Strategic Cooperation Agreement (SCA) for joint investigation of clean hydrogen production business’ with POSCO Holdings and Adenok at Adenok headquarters in Abu Dhabi on the 30th.
According to this agreement, the three companies will jointly promote the following projects: ▲ production and supply of blue hydrogen using LNG, and ▲ carbon capture and storage (CCS) generated during hydrogen production.
The business location is POSCO International’s Gwangyang LNG Terminal. POSCO Group is building a blue hydrogen production infrastructure by linking Gwangyang LNG Terminal. The produced hydrogen will be supplied to nearby demand sources such as Hadong and Yeosu, including the Gwangyang Steel Mill, starting in 2029.
In addition, POSCO Group plans to link with the CCS business. In order for blue hydrogen to be recognized as clean hydrogen, it is essential to reduce carbon emissions by capturing carbon generated during production. Adnoc is considered a leader in the CCS field and is evaluated as an excellent partner for this clean hydrogen production project.
*If CO2 generated when producing 1kg of hydrogen is less than 4kg, it is recognized as clean hydrogen. Blue hydrogen meets these regulations
Starting this year, the three companies plan to begin a joint investigation for business feasibility, including building a clean hydrogen production facility in Gwangyang and calculating the size of a carbon dioxide capture and liquefaction terminal.
This project is significant in that it is POSCO International’s ‘official first step in the domestic clean hydrogen supply business.’ Starting with this project, POSCO Group plans to focus on transitioning to low-carbon industrial processes and building clean hydrogen infrastructure for hydrogen co-fired power generation.
Last year, POSCO Group announced a plan to build a supply system of 1.26 million tons of clean hydrogen by 2035. The group aims to supply 540,000 tons to Gwangyang, 360,000 tons to Incheon, and 360,000 tons to Pohang.
Lee Jeon-hyuk, head of POSCO International’s energy division, said, “Gwangyang is the group’s core base where POSCO’s world’s largest steel mill is operated and POSCO International’s LNG terminal, which will be used as a clean hydrogen production infrastructure in the future, is located.” He added, “Through this project, Gwangyang “Of course, we will contribute to the development of the national hydrogen industry by stably supplying clean hydrogen to nearby industrial complexes such as Yeosu and Hadong.”
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