POSCO Group, one of Korea’s largest conglomerates, and Ørsted, the world’s most sustainable energy company, announced the signing of a Memorandum of Understanding (MoU) to expand their relationship.
POSCO and its subsidiaries will use their combined capabilities to help Ørsted develop its 1.6 GW offshore wind projects off the coast of Incheon City. Furthermore, Ørsted and POSCO will conduct feasibility studies on a potential renewable hydrogen collaboration.
Korea has set a lofty goal of deploying 12 GW of offshore wind power by 2030. Korean President Moon Jae-in announced the Green New Deal in September 2020, with the goal of achieving net zero emissions by 2050. In addition to the company’s flagship Incheon projects, Ørsted takes another significant step in pioneering renewable energy development in Korea and supporting Korea’s transition to clean energy with this MoU.
Ørsted has a long-standing relationship with POSCO, whose steel business has been a strategic global supplier and a trusted partner for Ørsted’s Hornsea 1 and three other offshore wind farms, supplying over 100,000 tons of steel. POSCO Group joined the Korean government’s decarbonisation declaration in December 2020, announcing its goal to become a leading renewable hydrogen company by 2050 and achieve carbon neutrality.
Jung-son Chon, POSCO Group Senior Executive Vice President, said, “POSCO has placed its hydrogen business as one of our growth engines for the group and is working to discover renewable hydrogen business opportunities. We hope to see our renewable hydrogen business pick up speed through this business collaboration with Ørsted. Combining the operational know-hows of Ørsted, a global company in the field of offshore wind and renewable hydrogen, with the business capabilities of POSCO Group, which includes construction and energy, both companies will be able to create synergies for a win-win collaboration.”
Mads Nipper, Group President and CEO of Ørsted, says: “With a vision of creating a world that runs entirely on green energy, Ørsted transformed from a fossil-fuel intensive utility to the world’s most sustainable energy company. We are determined to be a global catalyst for systemic change and to help countries and companies undertake their green transformation through scaling existing green energy solutions such as wind and solar and developing and scaling new green solutions such as hydrogen. It is wonderful that we could announce the MoU with POSCO during the P4G summit in Korea, which gathers global thought leaders and decision-makers to work towards achieving Sustainable Development Goals and creating a more sustainable world.”
Matthias Bausenwein, President of Ørsted Asia-Pacific, says: “This MoU is a major step for Ørsted to deepen our collaboration with POSCO, which shares our mindset of taking responsibility for reducing CO2 emissions. We look forward to bringing in our experience and insights to support Korea in achieving its energy transition and decarbonisation goals. With the Danish state as our majority owner, Ørsted is committed to working with local partners and suppliers across the value chain to build a vibrant Korean offshore wind industry through our 1.6 GW Incheon projects and potential more buildouts in other regions of the country. 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.”