POSCO-Samsung C&T-PIF, Green Hydrogen Production Project in Saudi Arabia 추진

Signing of MOU to Strengthen Cooperation in Green Hydrogen Business Among Three Parties
Selection of Economically Optimal Business Site Within the Year
Plan to Complete Feasibility Study

[Asia Economy Reporter Hwang Yoon-joo] POSCO and Samsung C&T Construction Division are promoting cooperation with Saudi Arabia's sovereign wealth fund PIF (Public Investment Fund) on green hydrogen production projects in Saudi Arabia.

On the 18th (local time), POSCO signed a tripartite memorandum of understanding (MOU) with Samsung C&T and PIF to strengthen cooperation on green hydrogen projects at the 'Korea-Saudi Smart Innovation Growth Forum' held at the Ritz-Carlton Hotel in Riyadh, Saudi Arabia, attended by President Moon Jae-in.

Through this MOU, the three parties will jointly promote a project to produce green hydrogen based on renewable energy locally in Saudi Arabia. First, they plan to select economically advantageous project sites and complete feasibility studies within this year. Subsequently, by leveraging the capabilities of the three parties, they will strengthen strategic cooperation to expand the hydrogen business value chain and revitalize the hydrogen economy in both countries.

PIF is one of the world's largest sovereign wealth funds with investment assets totaling 570 trillion KRW. It is a partner that made a large-scale equity investment in POSCO Group's affiliate POSCO Engineering & Construction in 2015 and has been continuously cooperating. Through this project, it is expected to expand synergies with the POSCO Group.

Yoo Byung-ok, head of POSCO's Industrial Gas and Hydrogen Business Division, stated, "Saudi Arabia, where renewable energy can be produced at the lowest cost in the world, is a very important region for POSCO, which plans large-scale hydrogen production," adding, "We will successfully establish a hydrogen production model in Saudi Arabia and secure competitiveness in the hydrogen business."

Meanwhile, POSCO is promoting its hydrogen business under the vision of becoming a global top 10 hydrogen producer by 2050 with a total production of 7 million tons of hydrogen. In the mid-term, it plans to invest 10 trillion KRW by 2030 to establish a 500,000-ton hydrogen production system, accelerating the internalization of core technologies to build a global hydrogen supply chain centered on seven strategic countries and secure competitive advantages.