Revealed on Tuesday (March 1), a memorandum of understanding (MoU) has been signed between the companies which will create a global value chain for hydrogen.

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A key aspect of the deal is to target cost-competitive production of green hydrogen and with the target focus on regions with high renewable energy production, the facilities created in these areas will support this.

As well as this, securing steady flows of green hydrogen will additionally support POSCO in manufacturing green steel and decarbonise this sector.

Frederic Claux, Managing Director of Thermal & Supply AMEA at Engie, said, “As this new strategic alliance with POSCO demonstrates, the steel industry is embracing the transition to net-zero as leaders around the world seek to achieve ambitious climate goals.

“With growing interest in low carbon green steel solutions, we are pleased to be signing this MoU today to support POSCO’s ambitions. We are convinced that hydrogen is a key energy carrier to drive us forward to a carbon-neutral economy, in addition to renewable energy.

“By focusing our growth ambitions on renewable energy and green hydrogen production, we can support the most energy intensive industries such as steel production, helping them to reduce their CO2 emissions. This latest partnership is a new milestone for us at ENGIE as we seek to power the transition to the green economy.”

Byeong-Og Yoo, Head of Green Materials & Energy Business Team and Senior Executive Vice President at POSCO, said, “Steel manufacturing is undergoing significant transformation as governments and businesses increasingly embrace the shift toward carbon neutrality.

“At POSCO, we intend to establish a hydrogen production capacity of seven million tonnes by 2050 to become a top 10 producer globally in support of the transition to green steel-making.

“As part of our strategy to establish a global supply of hydrogen in countries focused on renewable energy and low-cost natural gas resources, Engie is a natural fit for our production objectives.

“With Engie’s expertise in large-scale renewable hydrogen production, we look forward to working together to codevelop the green hydrogen value chain, advancing our collective net-zero agendas and supporting the wider energy transition.”

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