POSCO plans to invest $40 billion in environmental projects in Australia by 2040

POSCO plans to invest $40 billion in environmental projects in Australia by 2040

Investments will be directed to the construction of facilities for the production of “green” hydrogen

South Korean steel company POSCO Group intends to invest $40 billion in environmental projects in Australia until 2040. This was stated by the company’s CEO Chung Woo Choi at a meeting with Australian Prime Minister Anthony Albanese, Hydrogen Central reports.

During the meeting, POSCO presented the Australian Government with the current state of the business and future investment plans, including the construction of renewable energy facilities.

The company plans to build facilities for the production of “green” hydrogen, which will operate on electricity produced by solar power plants and wind turbines. Subsequently, this energy will also be used for the production of hot briquetted iron (HBI).

They intend to allocate $28 billion for the construction of hydrogen production plants, and another $12 billion for the modernization of metallurgical equipment for the production of environmentally friendly steel. By 2040, the company plans to receive 1 million tons of hydrogen per year through the implementation of projects.

“Australia is the best country for producing clean hydrogen due to its land, solar and wind resources, progressive laws and systems, and favorable business environment. POSCO Group has already invested 4 trillion won ($3.07 billion) in the development of metallurgical projects in Australia,” the report says.

As reported by the GMK Center, POSCO intends to reduce carbon emissions by 10% by 2030. To do this, the company is investing $14 billion in the construction of two electric arc furnaces at plants in Gwangyang and Pohang, which are scheduled to be launched in 2025 and 2027, respectively.

POSCO wants to move to carbon-free steel production by 2050. The company plans to achieve climate neutrality through the use of hydrogen and renewable energy sources in steel production.