POSCO Leads World’s Largest Green Hydrogen Project in Oman
Image Source: Aju Korea Daily
South Korean steel giant POSCO is taking a major leap towards green steel production with a record-breaking deal. A consortium led by POSCO has secured a $6.7 billion contract to build the world’s largest green hydrogen facility in Duqm, Oman. This project significantly contributes to Oman’s goal of achieving carbon neutrality by 2050.
POSCO holds a leading 28% share in the consortium, demonstrating the company’s commitment to green hydrogen investment. Back in March 2022, they identified Oman as a potential location for hydrogen projects, culminating in this successful agreement.
The project will be a collaborative effort. Samsung Engineering will manage the engineering, procurement, and production phases. Joining forces with POSCO are prominent players such as French energy company Engie SA, four Korean state-owned power companies, and PTT Exploration and Production Public Company of Thailand. PTT will play a crucial role in facilitating the production and sale of green hydrogen.
The official signing ceremony with Omani authorities, including the energy minister, is scheduled for June 21st, 2023. While negotiations within the consortium are ongoing, this deal marks a significant milestone for POSCO’s green hydrogen ambitions.
This isn’t POSCO’s only green initiative. They recently launched operations at a new facility within their Pohang steel complex. This facility focuses on producing hydrogen-based green steel, a critical step towards decarbonizing the steel industry. Construction is expected to be completed in 2026, with an annual production capacity of 300,000 tonnes of green steel for various heavy-duty industrial applications.
The Pohang complex will be the world’s first to utilize fluidised bed reduction reactors. This innovative HyREX (Hydrogen Reduction) technology uses hydrogen to produce direct reduced iron (DRI). Unlike traditional furnaces, HyREX separates the reduction and melting processes. This allows POSCO to reduce iron ore with hydrogen, emitting water vapor instead of carbon dioxide. Additionally, HyREX allows for more efficient use of mined ore, eliminating the need for pelletization.
By leading the way in green hydrogen production and innovative steelmaking techniques, POSCO is making significant strides towards a more sustainable future.
