South Korea’s POSCO Intl Eyes Investments In CCUS, Hydrogen in 2024

South Korea’s POSCO Intl Eyes Investments In CCUS, Hydrogen in 2024 - Carbon Herald

POSCO International (KRX: 047050), the trading and resources arm of South Korea’s POSCO Holdings, is gearing up for substantial investments in the energy sector, eyeing growth opportunities in the carbon capture, utilization, and storage (CCUS) and hydrogen sectors.

On Monday, POSCO International disclosed its intention to diversify into CCUS and hydrogen-related activities, aiming to carve out a niche in sustainable energy solutions.

In a recent financial regulatory filing, the company has added CCUS and production, storage and transportation of hydrogen and hydrogen compounds to its business purposes, as reported by the Korea Economic Daily.

CCUS technologies, which involve capturing and safely storing carbon dioxide (CO2) underground, hold promise in mitigating climate change impacts.

Having already embarked on commercializing carbon capture and storage (CCS), POSCO International, in collaboration with partners like Repsol (BME: REP) and Petroleum Sarawak, has secured projects in regions like Texas (USA) and Malaysia.

Relevant: South Korea To Disclose Emissions Every Year, Support CO2 Capture Technology

In the hydrogen sector, the South Korean company signed a strategic cooperation agreement with the Abu Dhabi National Oil Company (ADNOC) of the United Arab Emirates (UAE) in January, announcing their first joint project already in February.

POSCO International has committed $745 million to further expanding its energy business in 2024, positioning it to become the company’s third growth engine after steel and electric vehicle battery material.

This investment includes tripling the natural gas production capacity of its subsidiary Senex Energy, a venture initiated in 2022 through acquiring a majority stake.

Additionally, in the midstream sector, POSCO International is set to finalize the expansion of an energy tank in South Korea to accommodate 200,000 tons of natural gas by June 2024.

The company also plans to start construction on motor core plants in Poland and Mexico, aiming to bolster its production capacity for electric vehicle components to 7 million units by 2030.

Read more: KNOC Joins Govt Initiative To Explore CO2 Storage Potential Offshore South Korea

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