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Renewable energy transition

POSCO, Orsted form offshore wind and hydrogen partnership

POSCO pledges group-wide support for Orsted’s 1.6 GW Incheon offshore wind project to be built by 2026

By May 28, 2021 (Gmt+09:00)

MOU Signing Ceremony for POSCO and Orsted (Courtesy of Orsted A/S)
MOU Signing Ceremony for POSCO and Orsted (Courtesy of Orsted A/S)

South Korea’s steelmaker POSCO has taken another big step in accelerating the industry’s shift toward renewable energy.

POSCO said on May 27 that it signed a memorandum of understanding (MOU) with Denmark’s Orsted A/S to expand collaboration on offshore wind and hydrogen projects in Korea. Orsted is the market leader in the global offshore wind segment.

Under the MOU, POSCO and its affiliates will put together the group’s joint capabilities to support the development of Orsted’s 1.6-gigawatt offshore wind projects off the coast of Incheon. Scheduled to begin commercial operations from 2026, the project will be the largest offshore wind farm in Korea.  

POSCO will be supplying steel for Orsted’s offshore wind farms, while POSCO Engineering & Construction Co. will manufacture offshore wind turbine structures. Another affiliate, POSCO Energy Co., will be responsible for green hydrogen storage as well as power generation from hydrogen.

POSCO, one of Orsted's strategic global suppliers, provides more than 100,000 tons of steel for the Danish company’s Hornsea 1 in the UK and three other offshore wind farms.

“This MOU is a major step for Orsted 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 decarbonization goals,” said Orsted’s Asia-Pacific President Matthias Bausenwein.

In addition, the two companies will jointly conduct feasibility studies for potential collaboration on renewable hydrogen projects. Orsted will also build green hydrogen production facilities in Korea and continue to develop offshore wind projects in the country.

"POSCO has placed its hydrogen business as a growth engine 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 Orsted,” said POSCO Group Senior Executive Vice President Chon Jung-son.

Write to Kyung-min Kang at kkm1026@hankyung.com

Daniel Cho edited this article.

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