POSCO "Achieving 30 Trillion KRW Hydrogen Sales by 2050"

Hydrogen Business Division Launching in January Next Year
Targeting 30 Trillion Won in Hydrogen Sales by 2050

[Asia Economy Reporter Hwang Yoon-joo] POSCO is fostering the hydrogen business as a new growth engine for the group. POSCO plans to establish a hydrogen production system of 5 million tons by 2050 and aims to achieve sales of 30 trillion KRW in the hydrogen business.

On the 13th, POSCO announced its vision titled "Leading Green Hydrogen Company Driving the Hydrogen Economy." To this end, it plans to acquire core technologies and production capabilities, including technology to produce hydrogen by water electrolysis, by 2030.

The company will launch a business division in January next year and will accelerate the hydrogen business by promoting research and development (R&D) cooperation with domestic and international research institutions centered on RIST (Pohang Institute of Industrial Science and Technology).

Choi Jeong-woo, Chairman of POSCO, said, "We will take the lead in producing and supplying hydrogen, the core of future clean energy," and added, "We will contribute to completing the national hydrogen ecosystem for a carbon-neutral society." POSCO had previously declared its goal to achieve carbon neutrality by 2050.

Hydrogen, which is attracting attention as the next-generation clean energy source, is expected to see domestic annual demand increase to 1.94 million tons by 2030 and over 5.26 million tons by 2040, with its applications expanding from petrochemicals to transportation and power generation sectors. Currently, POSCO has an annual hydrogen production capacity of 7,000 tons using by-product gas generated from steel manufacturing processes and natural gas (LNG). Approximately 3,500 tons of by-product hydrogen is extracted and used for temperature control and oxidation prevention during steel production. POSCO also developed the world's first steel product for hydrogen fuel cell separators and supplies it to domestically produced hydrogen vehicles.

POSCO plans to strengthen its capabilities through research on hydrogen reduction steelmaking technology using hydrogen, development of steel materials necessary for hydrogen production, transportation, storage, and utilization, and expansion of by-product hydrogen production facilities.

Additionally, POSCO will seek various business opportunities such as green hydrogen distribution and infrastructure construction, and green hydrogen projects, while promoting large-scale investments. Through this, it plans to increase by-product hydrogen production capacity to 70,000 tons by 2025 and produce 500,000 tons of blue hydrogen by 2030 in partnership with global companies.

Green hydrogen production capacity will be established at 2 million tons by 2040, completing a hydrogen production system of 5 million tons by 2050. Blue hydrogen is produced using fossil fuels such as natural gas, with the resulting carbon dioxide captured and stored underground. Green hydrogen is produced by water electrolysis based on renewable energy.

POSCO plans to realize a hydrogen reduction steel mill based on green hydrogen by 2050. Once the hydrogen reduction steelmaking process is commercialized, up to 3.7 million tons of green hydrogen will be required annually, making POSCO the largest hydrogen demand and production company.

POSCO will also develop ammonia hydrogen extraction technology, a key technology for hydrogen transportation and storage. Ammonia, which combines hydrogen with nitrogen, is considered an efficient and economical carrier due to its ease of transport and storage.

As an initial project, POSCO plans to install hydrogen charging stations in steel mill areas and convert steel transport vehicles and in-house work vehicles to hydrogen vehicles. Currently, POSCO operates about 1,500 large trucks for steel product transportation, and including temporary vehicles, the annual fleet size is about 5,000.

Together with group companies, POSCO will establish a value chain covering the entire cycle of "production-transportation-storage-utilization."

POSCO International will participate in government hydrogen introduction projects and overseas hydrogen projects. POSCO Energy will build hydrogen-dedicated terminals and gradually convert LNG turbine power generation to hydrogen turbine power generation starting in 2030. POSCO Engineering & Construction will undertake construction projects necessary for hydrogen city development as well as hydrogen storage and transportation.

This content was produced with the assistance of AI translation services.