POSCO plans USD-40bn investment in Aussie green hydrogen, steel by 2040

South Korean steelmaker POSCO Group has set out plans to invest, with partners, USD 40 billion (EUR 38.3bn) in green hydrogen and green steel in Australia by 2040.

The company intends to invest USD 28 billion in the production of hydrogen via renewable energy and electrolysis with the aim of manufacturing 1 million tonnes of hydrogen in Australia by the end of the next decade. A further USD 12 billion will be invested in green steel.

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"We see Australia as the most important country in terms of investment for us to secure hydrogen which is essential for hydrogen steel manufacturing," said POSCO Group chief executive Jeong-woo Choi. He met with Australia’s prime minister Anthony Albanese in Canberra to discuss cooperation on eco-friendly projects on Thursday, after the 43rd Australia-Korea Business Council meeting the days before in Sydney.

POSCO is looking to produce green hydrogen using large-scale and competitive renewable energy such as solar and wind and then use it to manufacture hot briquetted iron (HBI). The company sees Australia as an ideal location for hydrogen development given its land availability, rich solar and wind resources, as well as progressive laws and good business environment.

"The business and investment plans of the POSCO Group in Australia are consistent with the direction of the policies being promoted by the government of Australia," prime minster Albanese commented in POSCO’s statement.

POSCO says it has spent more than KRW 4 trillion (USD 3.1bn/EUR 2.9bn) in Australia on developing resources including iron ore, lithium and nickel.

(USD 1 = EUR 0.957)

(KRW 1 = USD 0.001/EUR 0.001)