Orsted, Posco to work on renewable hydrogen in Korea
Posco foresees hydrogen business as its growth engine and is exploring renewable hydrogen business opportunities.
Orsted, a Danish multinational power company, and Posco Group, a Korean steelmaker, have agreed to conduct feasibility studies on potential collaboration on renewable hydrogen.
Posco and Orsted have signed MoU during the P4G summit in Korea, which gathered global thought leaders and decision-makers to work towards achieving Sustainable Development Goals.
Posco will also support the development of Orsted’s 1.6 GW offshore wind projects off the coast of Incheon City. South Korea aims to install 12 GW offshore wind capacity by 2030. Last year, Korean President Moon Jae-in announced the Green New Deal to achieve a net-zero emissions target by 2050. Posco also announced to achieve its carbon neutrality by 2050.
Both partners have already maintained a better relationship given that Posco supplying around 100k tonnes of steel for Orsted’s Hornsea 1 and three other offshore wind farms.
Jung-son Chon, Posco Group Senior EVP, said, “We hope to see our renewable hydrogen business pick up speed through this business collaboration with Orsted.”
Mads Nipper, Group President and CEO of Orsted, said, “With a vision of creating a world that runs entirely on green energy, Orsted transformed from a fossil-fuel intensive utility to the world’s most sustainable energy company.”
Matthias Bausenwein, President of Orsted Asia-Pacific, said, “This MoU is a major step for Orsted to deepen our collaboration with Posco, which shares our mindset of taking responsibility for reducing CO2 emissions.”
Mr Bausenwein further added, “In addition to greening the electricity mix, offshore wind can become the feedstock for renewable hydrogen which can help decarbonising sectors that cannot be directly electrified such as transport and heavy industry.”