According to Pulse by Maeil Business News Korea,

South Korea’s Posco Group has joined hands with the world’s largest No. 1 offshore wind power company Orsted to carry out offshore wind and green hydrogen projects.

Posco, the country’s steel-making giant, said on Thursday that it signed a memorandum of understanding with Orsted on Wednesday on comprehensive partnership in local offshore wind and green hydrogen sectors.

Under the MoU, Orsted will develop offshore wind power projects and establish green hydrogen production facilities in Korea. Posco will supply steel products essential for the construction of offshore wind farm and participate in green hydrogen production using wind power. Posco E&C will also build structures for the offshore wind power farm while Posco Energy becomes responsible for green hydrogen storage and hydrogen power.

Posco and Orsted will also promote business feasibility and research on green hydrogen projects in general and offshore wind power farm in Incheon. Posco expected the comprehensive partnership to help contribute to Korea’s efforts to go carbon neutral by 2050 and shift towards hydrogen energy.

Orsted is currently engaged in an 8 trillion won ($7.2 billion) project to build a 1.6 gigawatt offshore wind farm in Incheon with an aim to begin commercial operations after 2026. The offshore wind farm, once complete, will be the largest in Korea.

Posco has been engaged in cooperative ties with Orsted, such as by supplying over 100,000 tons of rolled steel for its offshore wind farm project Homesea 1, 2 in the United Kingdom.

An unnamed official from Posco said that integrating operation knowhow of Orsted, a global leader in green hydrogen sector, and business capacity of Posco in construction and energy sectors will lead to win-win synergy.

Martin Neubert, deputy chief executive and chief commercial officer at Orsted, said that it would pursue long-term partnership with Posco.



By Lee Eun-joo

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (May 27, 2021)