POSCO Holdings-Korea Electric Power Corporation Jointly Invest in Hydrogen Production Business

2027 Target for Introduction of Clean Hydrogen and Ammonia

POSCO Holdings and Korea Electric Power Corporation signed a Memorandum of Understanding to establish a 'Hydrogen and Ammonia Business Cooperation Partnership' on the 27th. From the right: Choi Jeong-woo, Chairman of POSCO Group; Yoo Byung-ok, Vice President and Head of Eco-friendly Future Materials Team at POSCO Holdings; Jeong Seung-il, President of Korea Electric Power Corporation; Choi Hyun-geun, Head of Strategy and Innovation Division at Korea Electric Power Corporation.

[Asia Economy Reporter Oh Hyung-gil] POSCO Holdings and Korea Electric Power Corporation (KEPCO) have decided to collaborate on the hydrogen business, which is gaining attention as a carbon-neutral future industry, by jointly developing technology.

On the 1st, the two companies announced that they signed a Memorandum of Understanding (MOU) on the 29th to establish a partnership for cooperation in the hydrogen and ammonia business.

The two companies will cooperate in areas such as joint development and investment in domestic and overseas green and blue hydrogen production projects, volume exchange to secure flexibility in hydrogen and ammonia supply, hydrogen-ammonia co-firing power generation, and development of CCUS (Carbon Capture, Utilization, and Storage) technologies.

By jointly carrying out the hydrogen and ammonia businesses that were previously pursued individually, they will realize economies of scale and enhance business competitiveness through the establishment of hydrogen production infrastructure and joint investment.

Additionally, through hydrogen and ammonia volume exchange, they plan to reduce risks arising from external conditions and create a foundation for mutual complementarity to respond more proactively to changes in the business environment.

Going forward, POSCO Holdings plans to review joint development and investment in overseas blue and green hydrogen production projects in countries such as Saudi Arabia and Chile, aiming to introduce clean hydrogen and ammonia by 2027 in cooperation with KEPCO.

Choi Jeong-woo, Chairman of POSCO Group, said, "Hydrogen is not only an important raw material for green steel with zero carbon emissions as a new future material, but also an essential clean energy source to prepare for the carbon-zero era. We expect to lay the cornerstone of the hydrogen economy infrastructure by making the hydrogen business another core business axis and cooperating with Korea Electric Power Corporation, the largest hydrogen supplier and consumer in Korea."

Jung Seung-il, President of Korea Electric Power Corporation, stated, "We will do our best to play a significant role in creating Korea’s hydrogen ecosystem."

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