South Korean steel manufacturer Posco has committed to investing $40bn in renewable hydrogen and green steel in Australia, with a target of 1mn t/yr of hydrogen production in the country by 2040.

“We see Australia as the most important country in terms of investment for us to secure hydrogen which is essential for hydrogen steel manufacturing,” says Posco CEO Jeong-woo Choi.

The firm has set a target for carbon neutrality by 2050. It currently produces grey hydrogen for use in steelmaking to control temperatures and prevent oxidation of the final product, and has this year signed an agreement with Saudi developer Acwa and another with Saudi Arabia’s Public Investment Fund as part of a South Korean consortium, both to cooperate on a green hydrogen and ammonia value chain.

“The business and investment plans of the Posco Group in Australia are consistent with the direction of the policies being promoted by the government of Australia,” says Australian prime minister Anthony Albanese.

The Australian government has allocated more than A$525mn ($356mn) in its 2022–23 budget for the development of hydrogen hubs throughout the country, as part of its bid to become a major exporter of the fuel.

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Author: Polly Martin