POSCO Holdings and Korea Electric Power Corp. (KEPCO) signed a memorandum of understanding (MOU) on Friday to collaborate on hydrogen supply and technology development, the two firms said on Sunday.
“Hydrogen is not only a critical raw material for carbon-free ‘green steel,’ but it is also a critical source of clean energy for the zero-carbon age,” stated POSCO Group Chairman Choi Jeong-woo. “With our relationship with KEPCO, which will be the nation’s largest provider and user of hydrogen, we intend to create a cornerstone of the hydrogen economy.”
The hydrogen economy is one in which hydrogen is used as a commercial fuel.
“We will make progress in discussions for actual projects based on the recent MOU,” KEPCO CEO Cheong Seung-il stated, “doing our best to play a big role in developing a hydrogen ecosystem in Korea.”
Both firms want to invest cooperatively in the development of infrastructure to manufacture “green” and “blue” hydrogen, which refers to hydrogen produced from renewable energy and hydrogen produced from natural gas, respectively.
Given that POSCO Group and KEPCO are the country’s top hydrogen users, their partnership is likely to result in economies of scale, boosting their worldwide competitiveness.
In particular, POSCO Group’s holding company and the state-run electric utility business are considering investing in green and blue hydrogen production projects in Saudi Arabia and Chile, with the goal of adopting a cleaner energy source by 2027.
They will also try to switch hydrogen and ammonia in order to avoid external risks by having a flexible supply and being able to respond quickly to changing business conditions.
They will also continue to work on improving carbon capture, utilization, and storage (CCUS) technologies, as well as developing technology for co-firing hydrogen and ammonia with coal and liquefied natural gas to minimize carbon emissions while generating power.
