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 by 2040. This was announced by the company’s CEO Jeong-woo Choi at a meeting with the Prime Minister of Australia Anthony Albanese, reports Hydrogen Central.

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

The company plans to build facilities for the production of green hydrogen based on solar power plants and wind generators. In the future, this energy will be used for the production of hot briquetted iron (HBI).

$28 billion will be directed to the construction of hydrogen production plants, and another $12 billion – to the modernization of steel 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 an optimal country for the production of clean hydrogen due to the availability of land, solar and wind resources, together with progressive laws and systems, as well as an excellent business environment. POSCO Group has already invested 4 trillion won ($3.07 billion) in the development of steel projects in Australia,” the report said.

As GMK Center reported earlier, POSCO plans until 2030 tp reduce carbon emissions by 10%. The company is investing $14 billion in the construction of two electric arc furnaces at factories in Kwangyang and Pohang, which are planned to be launched in 2025 and 2027, respectively.

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