POSCO Group is making significant strides into the clean hydrogen sector in collaboration with the Abu Dhabi National Oil Company (ADNOC), a state-owned petroleum company in the United Arab Emirates (UAE).
POSCO International announced on Jan. 31 that it has signed a “strategic cooperation agreement (SCA) for joint investigation into clean hydrogen production business” at the ADNOC headquarters in Abu Dhabi in collaboration with POSCO Holdings and ADNOC. According to this agreement, the three companies will produce and supply blue hydrogen using LNG and promote carbon capture and storage (CCS) projects to capture and store carbon emissions during hydrogen production.
This project will take place at POSCO International’s Gwangyang LNG terminal, where POSCO Group plans to establish the infrastructure for blue hydrogen production. Starting with the Gwangyang steel mill, the supply is expected to extend to nearby demand centers such as Hadong and Yeosu from 2029 onward.
For blue hydrogen to be recognized as clean hydrogen, it is essential to reduce carbon emissions by capturing carbon emitted during the production process, thus linking to CCS projects. According to POSCO Group, ADNOC is considered a leader in the CCS field.
Initially, the three companies plan to commence a joint investigation this year to assess the feasibility of projects, including the construction of a clean hydrogen production facility in Gwangyang as well as the evaluation of CCS and the sizing of the liquefied terminal.
Lee Jun-hyuk, the head of the Energy Division at POSCO International, stated, “Gwangyang is a core hub for the group, located alongside the world’s largest steel mill and the LNG terminal at POSCO, which will be utilized as infrastructure for clean hydrogen production in the future. We will supply clean hydrogen not only to Gwangyang but also to nearby industrial complexes.”
Last year, POSCO Group announced its plans to establish a clean hydrogen supply system of 1.26 million tons by 2035. This includes 540,000 tons in Gwangyang, 360,000 tons in Incheon, and 360,000 tons in Pohang.