Posco, a South Korean steelmaker, is partnered with Fortescue Metal Group (FMG), an Australian raw material supplier, for a green hydrogen project.
Posco CEO Jeong-Woo Choi and FMG Chairman Andrew Forrest agreed to develop a green hydrogen business using renewable energy in the meeting.
Posco will continue to source iron ore from FMG to make steel products for FMG power generation facilities to produce hydrogen. FMG will also buy PosMAC, a premium type of steel, for developing its solar and wind power plants.
CEO Jeong-Woo Choi stated, “If competitive green hydrogen can be produced with cooperation between the two companies and is introduced to Korea, the era of green hydrogen in Korea will be accelerated.”
FMG Chairman said stated, “Green hydrogen and ammonia are important factors in reducing carbon emissions as the world is in the transition to clean energy.”
Both Posco and FMG have long term plans for carbon neutrality and green hydrogen. POSCO current annual hydrogen production capacity of hydrogen is 7,000 tonnes, utilising the Cokes Oven Gas and natural gas (LNG). It plans to produce up to 2 million tonnes of green hydrogen production by 2040 and then ramp up to 5 million tonnes by 2050.
Fortescue also signed a memorandum of understanding (MoU) with Japan’s Kawasaki Heavy Industries and Iwatani Corp to supply liquid hydrogen into Japan.