South Korean steel producer Posco will team up with Denmark’s Orsted, a wind power generator, to provide steel for a project that will produce hydrogen using wind-generated electricity.
Under a memorandum of understanding (MoU) signed on Thursday, both companies will evaluate the feasibility of producing hydrogen that runs on electricity from renewable sources, also called green hydrogen, near Incheon City where the energy firm plans to build Korea’s largest wind power facility.
The MoU further develops the relationship between the companies as Posco has already supplied over 100,000mt of steel to Orsted for previous projects. Authorities in South Korea aim to develop 12 GW of offshore wind capacity by the year 2030, targeting net zero emissions by 2050.
Orsted announced the project late last year with an expected investment of KRW8tn ($7.1bn) scheduled to begin in 2027. The plant will produce the largest capacity for a wind-power complex in Korea.
The project also ties in with Posco’s endeavors, as the fourth-largest global steelmaker to work toward attaining carbon neutrality by 2050. The company intends to be actively involved in the hydrogen supply chain from production to usage while gradually converting its production into hydrogen-based steelmaking.
If the parties determine that the green hydrogen production is achievable, Orsted will construct the operating capabilities while POSCO will supply steel for the project that will also contribute to producing and saving hydrogen made with wind-generated electricity.
($1 = KRW1,118.94)