New Memorandum of Understanding between ENGIE and Korean steel-maker POSCO to target green hydrogen production in the Middle East, Australia and Latin America
Dubai, UAE – ENGIE, the global low carbon energy company and POSCO, the world-leading South Korean steel-manufacturer, inked a Memorandum of Understanding (MoU) to explore joint development opportunities for green hydrogen production and related infrastructure in the Middle East, Australia and Latin America.
Under the MoU, ENGIE will leverage its existing industrial-scale renewable hydrogen value-chain experience to support POSCO’s hydrogen production. The MoU sets to support POSCO’s objective of securing a steady, competitively priced supply of green hydrogen, enabling its transition to green steelmaking and to participation in green hydrogen economy.
The MoU was signed by Frederic Claux, Thermal & Supply Managing Director for Asia, Middle East and Africa and Byeong-Og Yoo, Head of Green Materials & Energy Business Team and Senior Executive Vice President at POSCO.
The MOU supports ENGIE’s ambition to achieve net-zero carbon by 2045, and POSCO’s ambition to realize a green hydrogen base in their steel business by 2050 and become a leader in the age of post-carbon hydrogen in steel-making, fostering the growth of hydrogen ecosystem across the entire value chain.
Speaking at the signing of the MoU, Frederic Claux, Managing Director, Thermal & Supply AMEA, ENGIE, said, “As this new strategic alliance with POSCO demonstrates, the steel industry is embracing the transition to net-zero as leaders around the world seek to achieve ambitious climate goals. With growing interest in low carbon green steel solutions, we are pleased to be signing this MoU today to support POSCO’s ambitions. We are convinced that hydrogen is a key energy carrier to drive us forward to a carbon-neutral economy, in addition to renewable energy.”
Claux added, “By focusing our growth ambitions on renewable energy and green hydrogen production, we can support the most energy intensive industries such as steel production, helping them to reduce their CO2 emissions. This latest partnership is a new milestone for us at ENGIE as we seek to power the transition to the green economy.”
Byeong-Og Yoo, Head of Green Materials & Energy Business Team and Senior Executive Vice President at POSCO, said, “Steel manufacturing is undergoing significant transformation as governments and businesses increasingly embrace the shift toward carbon neutrality. At POSCO, we intend to establish a hydrogen production capacity of seven million tones by 2050 to become a top 10 producer globally in support of the transition to green steel-making.”
He added, “As part of our strategy to establish a global supply of hydrogen in countries focused on renewable energy and low-cost natural gas resources, ENGIE is a natural fit for our production objectives. With ENGIE’s expertise in large-scale renewable hydrogen production, we look forward to working together to codevelop the green hydrogen value chain, advancing our collective net-zero agendas and supporting the wider energy transition.”
Both parties, will cooperatively explore the business opportunities in potential projects in connection with the production, and supply of hydrogen/ammonia and the development of related infrastructures