POSCO to Collaborate with Australian Raw Material Supplier FMG on Green Hydrogen Project

[Asia Economy Reporter Hwang Yoon-joo] POSCO has agreed to mutually cooperate with Australian raw material supplier FMG (Fortescue Metal Group) on a green hydrogen project utilizing renewable energy.

On the 14th, POSCO Chairman Choi Jeong-woo met with Andrew Forrest, Chairman of FMG, the world's 4th largest iron ore company that announced carbon neutrality by 2040 in Australia and is actively leading green hydrogen projects, at the POSCO Center in Daechi-dong. They shared visions for the hydrogen business and discussed cooperation plans.

POSCO and FMG agreed that POSCO will participate in FMG's green hydrogen production project using renewable energy currently underway in Australia, and will cooperate in discovering additional projects in the future.

Chairman Choi Jeong-woo expressed expectations, saying, "FMG is a long-term contract supplier that stably provides iron ore to POSCO. Through cooperation, if the two companies produce competitive green hydrogen and introduce it early to Korea, it will accelerate the era of green hydrogen in Korea."

Chairman Andrew Forrest also stated, "Green hydrogen and ammonia are important factors in reducing carbon emissions as the world transitions to clean energy. I hope POSCO participates from FMG's first green hydrogen project and that we grow it together."

Furthermore, they agreed to cooperate in supplying POSCO's premium steel products such as PosMAC to FMG's eco-friendly power generation facilities including solar and wind power necessary for green hydrogen production. This is because POSCO imports iron ore from FMG to produce steel products, and then supplies these steel products to FMG's solar power facilities for hydrogen production, which is recognized as a sustainable business model that steelmakers and raw material suppliers can execute together in the carbon-neutral era.

This green hydrogen business cooperation with FMG is POSCO's first step in rapidly advancing its hydrogen business following the declaration of '2050 Carbon Neutrality' and the announcement of the 'Hydrogen Business Vision' to produce 5 million tons of hydrogen.

Earlier, in November, at the Korea-Australia Economic Cooperation Committee (Chairman Choi Jeong-woo) held online, POSCO presented a business model to produce green hydrogen overseas and import it domestically, announcing that regions rich in renewable energy such as Australia and Middle Eastern areas like Oman are promising core areas.

Meanwhile, on this day, POSCO and FMG also discussed the progress of the GEM matching fund operation, where both companies agreed last June to contribute a total of $100,000 ($50,000 each annually) to support local talent development in both countries, as well as expanding supply volumes for stable iron ore procurement.

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