POSCO and FMG recently agreed on POSCO participating in the green hydrogen production project using renewable energy that FMG is promoting in Australia. Both companies also agreed to cooperate in discovering additional projects in the future. Additionally, both companies agreed on adopting POSCO’s premium steel materials, like PosMAC, to eco-friendly power generation facilities, such as solar and wind power, that are required for producing green hydrogen by FMG. Under the agreement, POSCO imports FMG’s iron ore to make steel products, which will, in turn, be supplied for FMG’s solar power generation facilities to produce hydrogen. The system is considered to be the most sustainable business model that can be implemented by a steelmaker and a raw material supplier in the era of carbon neutrality.
The green hydrogen business cooperation with FMG is POSCO’s first step for its hydrogen business, promoted rapidly following the pledge to achieve carbon neutrality by 2050 and the presentation of its vision for the hydrogen business to establish a hydrogen production capacity of 5 million tons.
Previously, POSCO suggested a business model of producing green hydrogen overseas and bringing it back to Korea at the Korea-Australia Business Council held online in November. Australia and Middle Eastern countries like Oman, where renewable energy is abundant, were discussed to be prospective areas.
Meanwhile, POSCO and FMG discussed the progress of the GEM Matching Fund, which was created in June. Under the agreement of the Fund, both companies donate 100,000 USD every year, contributing 50,000 USD each to support young talents in both countries. Both companies further talked about expanding supply for stable iron ore procurement as well.