POSCO International, the resource development and trading subsidiary of POSCO Holdings, has announced a deal with Copenhagen Infrastructure Partners (CIP) to develop an offshore wind project off the coast of South Korea.
The two companies signed a memorandum of understanding (MoU) to jointly develop offshore wind from Pohang, wherein POSCO centres much of its industry. The MoU commits the two companies to collaborate on offshore wind projects in Pohang, as well as the development of green industry in the area such as green hydrogen and green ammonia production.
It is the latest in a recent spate of moves by the company towards clean energy production. Posco International already plans to develop 300MW of energy production capability from an offshore wind farm in Sinan County, where it has been operating a 62.7MW onshore wind farm since 2016.
At the signing ceremony, POSCO International vice-chairman Jeong Tak stated that: “The company has recently declared its transformation to a ‘global climate-friendly comprehensive business corporation’ and promoted the qualitative development of the energy business through the expansion of its renewable energy business.”
Tak continued, adding that the two companies are “hopeful that this agreement becomes a landmark for the company’s full-scale advancement into the sea wind power development sector and sets up a bridge for its cooperation in the green business sector.”
This explains the location of the Pohang Offshore Wind Project, as it will supply clean energy for the company’s newly announced green-steel project. The Pohang Steel Complex will use clean energy such as wind to power electrolysers for the production of hydrogen, which will in turn be used at the same site to create hydrogen-reduced steel. It will be a first for the use of fluidised bed reduction in the process.
The region also houses POSCO FUTURE M, POSCO’s chemical manufacturing wing, which POSCO said in its statement will serve as the base for distributing clean energy across the group’s activities.
