Gwangyang City-Jeonnam Province-POSCO Sign Hydrogen Industry Promotion MOU

Jeonnam and Gwangyang Strengthen Commitment to 'Joint Cooperation' for Hydrogen Industry Development

[Gwangyang=Asia Economy Honam Reporting Headquarters, Reporter Heo Seonsik] On the 3rd, Gwangyang City in Jeollanam-do announced that it signed a ‘Hydrogen Industry Promotion Business Agreement’ at the Jeonnam Provincial Government Office, attended by Governor Kim Young-rok, Vice Mayor Kim Kyung-ho, and Kim Hak-dong, Head of POSCO Steel Division (CEO and President).

According to this business agreement, Jeonnam Province, Gwangyang City, and POSCO will jointly cooperate to ▲ establish and operate special hydrogen charging stations for hydrogen buses and freight vehicles and a hydrogen shipping center ▲ promote hydrogen fuel cell power generation projects and create hydrogen pilot cities and specialized complexes ▲ build receiving terminals linked to the introduction of green hydrogen (ammonia) ▲ carry out carbon reduction activities and research and development projects through the transition to the hydrogen industry.

POSCO has set the vision of being a ‘leading green hydrogen company driving the hydrogen economy,’ taking the lead in carbon neutrality and energy transition, aiming to establish a production system of 5 million tons of green hydrogen by 2050 and achieve sales of 30 trillion KRW in the hydrogen business sector.

Recently, POSCO announced plans to shift from the traditional blast furnace method that uses coal to melt iron ore to a revolutionary hydrogen reduction steelmaking process utilizing hydrogen.

The province and Gwangyang City plan to provide administrative and financial support without hesitation to help POSCO realize its long-term vision for the hydrogen industry.

At the signing ceremony, Kim Hak-dong, Head of POSCO Steel Division, stated, “POSCO is expected to become the largest domestic hydrogen consumer company in the future by transitioning to the hydrogen reduction steelmaking process to achieve carbon neutrality. Stable production and securing of green hydrogen will be POSCO’s future competitiveness.”

He added, “In addition to our own steel demand, we will invest in infrastructure such as hydrogen charging stations and shipping centers that supply hydrogen for hydrogen mobility, industrial use, and fuel cell power generation, and strive to revitalize the future hydrogen market. Support and cooperation from local governments and the government’s institutional support are also important,” he emphasized.

Governor Kim Young-rok said, “The ‘green hydrogen production using renewable energy,’ which POSCO aims for as the final goal in hydrogen production, aligns with Jeonnam’s future vision of building a green hydrogen industrial cluster linked to large-scale offshore wind power.”

He added, “Based on POSCO Group’s world-class technology, Jeonnam will lead the blue and green hydrogen industries and work together with local companies to establish itself as a green hydrogen mecca with a world-class hydrogen industry ecosystem.”

Vice Mayor Kim Kyung-ho opened by saying, “Gwangyang City is the optimal location in Korea with great potential for hydrogen industry development, as it is home to POSCO and Gwangyang Port.”

He continued, “Taking this agreement as an opportunity, we ask for much support and cooperation from Jeonnam Province and POSCO for the designation of hydrogen pilot cities and hydrogen specialized complexes planned by Gwangyang City.”

Meanwhile, Gwangyang City is actively promoting the hydrogen industry in line with the government’s hydrogen economy roadmap, the 2050 carbon neutrality declaration, and the enactment of the Hydrogen Act, aiming for a rapid transition to a hydrogen economy centered on hydrogen as a clean energy source.

To this end, 200 million KRW was reflected in the first supplementary budget on the 30th of last month, and the ‘Gwangyang City Hydrogen Industry Promotion Basic Plan Project’ is being promoted.

This project will include Gwangyang City’s hydrogen industry promotion roadmap, designation of hydrogen pilot cities and hydrogen specialized complexes, fostering of hydrogen-specialized companies, plans for establishing a government-funded tentative ‘Carbon Reduction Research Institute,’ and discovery of linked projects related to POSCO’s hydrogen business.

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