Largest Overseas Project Yet
A global consortium led by POSCO HOLDINGS has secured exclusive development rights for Omani green hydrogen for 47 years, the largest overseas green hydrogen monopoly project pursued by a Korean company.
POSCO HOLDINGS announced on June 22 that it has signed a contract with Hydrom for exclusive development, production, and land lease for green hydrogen business in the Duqm region of the Al Wusta governorate, approximately 450 km southwest of Muscat, the capital of Oman.
The consortium plans to create a renewable energy complex with a capacity of 5 GW in the area and produce 220,000 tons of green hydrogen annually. Most of the green hydrogen produced locally will be synthesized into about 1.2 million tons of ammonia for safe and efficient transportation and will be used in Korea for hydrogen reduction steelmaking and clean carbon-free power generation. A portion will be used in Oman.
The consortium plans to build an ammonia synthesis plant in the Duqm special economic zone for easy maritime transportation. After a period of project development, they aim to start construction of renewable energy facilities, a green hydrogen plant, and an ammonia synthesis plant in 2027 and complete them by 2030.
POSCO Group plans to establish a value chain for the “green hydrogen business model” by integrating capabilities in various hydrogen businesses being pursued in each field from hydrogen production to transportation, storage, and utilization, and to prepare a system to produce 7 million tons of hydrogen by 2050. For this, POSCO HOLDINGS is promoting the development of various green and blue hydrogen projects centered on strategic areas such as Australia, the Middle East, Southeast Asia, and North America.