POSCO Int’l teams up with UAE for blue hydrogen

POSCO International Corp. and POSCO Holdings Inc. announced on Wednesday that they signed a strategic collaboration agreement (SCA) with the Abu Dhabi National Oil Company (ADNOC), the state-owned oil company in Abu Dhabi, United Arab Emirates (UAE).

Under the terms of the agreement, they will jointly participate in projects related to the production and supply of blue hydrogen utilizing liquefied natural gas (LNG) and carbon capture and storage (CCS) to reduce carbon emissions.

The POSCO Group plans to establish blue hydrogen production infrastructure in connection with POSCO International's Gwangyang LNG Terminal.

The hydrogen thus produced will be supplied to nearby consumers, including the Gwangyang Steelworks, as well as Hadong and Yeosu, starting in 2029.

In addition, they will collaborate on CCS projects to obtain recognition for the produced blue hydrogen as clean hydrogen.

ADNOC, widely acknowledged as a global leader in the CCS field, is considered an excellent partner for this clean hydrogen production project, according to POSCO International.

Starting this year, the three companies will work on building clean hydrogen production facilities at the Gwangyang LNG Terminal and initiate a joint feasibility study for the project, including carbon dioxide capture and the scale estimation of the liquefaction terminal.

Write to Sang Hoon Sung at uphoon@hankyung.com