POSCO and ADNOC Establish Collaborative Ties for Clean Hydrogen Initiatives

POSCO Holdings, along with its subsidiary POSCO International and Abu Dhabi National Oil Company (ADNOC), has inked a strategic cooperation agreement (SCA) to collaboratively explore the clean hydrogen production business. The tripartite agreement outlines joint efforts to advance the production and distribution of hydrogen using liquefied natural gas (LNG) and carbon capture and storage (CCS) technologies to mitigate carbon emissions during hydrogen production.

Under the agreement, POSCO will establish hydrogen production infrastructure at its Gwangyang LNG terminal. From 2029 onwards, the produced hydrogen is set to be supplied to various demand points, including Gwangyang Steelworks and nearby locations like Hadong and Yeosu. The incorporation of CCS technology is part of POSCO's strategy to ensure that the hydrogen produced is deemed "clean hydrogen" by reducing carbon emissions during the production process.

Commencing this year, the three entities plan to conduct a comprehensive joint investigation into project feasibility. This will encompass the evaluation of clean hydrogen production facilities, carbon dioxide capture, and a liquefaction terminal.

Lee Jun-Hyuk, Head of Energy Division at POSCO International, previously emphasized the significance of Gwangyang as a pivotal location within POSCO's operations. The Gwangyang LNG terminal is poised to play a crucial role as the infrastructure for clean hydrogen production in the future. The broader objective is to contribute to the advancement of South Korea's hydrogen industry.

In addition to the clean hydrogen venture, POSCO is actively exploring other sustainable initiatives. In 2023, the company, in collaboration with US-based CF Industries Holdings, disclosed its evaluation of a potential joint venture to construct a low-carbon clean ammonia plant at CF Industries' Blue Point Complex in Ascension Parish, Louisiana. This project is complemented by a long-term low-carbon clean ammonia offtake destined for South Korea.

If the joint venture materializes, POSCO envisions importing low-carbon clean ammonia from the Louisiana facility to South Korea. This imported ammonia will support the decarbonization efforts of both POSCO's coal-based power generation facilities and those of third-party entities. Moreover, POSCO aims to convert low-carbon clean ammonia into hydrogen, subsequently utilizing the low-carbon hydrogen in gas-based power plants and within its own steelmaking processes.

The strategic cooperation agreement between POSCO, POSCO International, and ADNOC marks a collaborative effort to explore and enhance clean hydrogen production. The utilization of LNG and CCS technologies aligns with the shared goal of reducing carbon emissions in the hydrogen production process. Concurrently, POSCO continues to diversify its sustainability initiatives, exploring ventures such as low-carbon clean ammonia production and conversion to hydrogen as part of its broader commitment to environmental responsibility and industry innovation.