South
Korean steel producer Posco Group will invest $60 billion (USD 40b) in
Australia by 2040 across the green steel supply chain, including in renewable
generation, electrolysis and steel making processes.
“We see Australia as the most important country in
terms of investment for us to secure hydrogen which
is essential for hydrogen steel manufacturing,” Posco CEO Jeong-woo Choi said.
“We plan to increase our investments in not only raw material
for steel making but also across various fields
in Australia including renewable energy, hydrogen and green steel.”
In terms of investment allocation, company has pledged $41.8
billion (USD 28b) for hydrogen production, including renewable energy
generation and electrolysis. The further $18 billion (USD 12b) will go
specifically towards green steel manufacturing.
This green steel investment plan sits alongside investments
Posco has already made in Australia to develop resources such as iron ore,
lithium, and nickel, reportedly worth more than 4 trillion South Korean won
($4.5 billion).
Australia’s prime minister Anthony Albanese, having recently met
with Posco’s CEO in Canberra, said his government “will actively cooperate with
Posco Group’s eco-friendly material businesses for the future.”
Green
steel
Posco has said it plans to use green hydrogen to produce hot
briquetted iron (HBI), a raw material from iron ore processing. It will then
apply its own hydrogen-reducing steel technology HyREX to create a
semi-finished steel product.
Green commodities like green steel, fertilisers and so on are,
according to BayWa r.e. Australia technology innovation and hydrogen lead Dr
James Hamilton, the most sensible focus for green hydrogen industries. This
direction is already clear in Europe, Hamilton previously told pv magazine
Australia, but remains mostly a glimmer here in Australia, where
emphasis is primarily on exporting hydrogen and its derivatives as a fuel.