POSCO Group to Collaborate with Aprotium on Clean Hydrogen Business

Cooperation to Promote Blue Hydrogen Business Based on CCU
Aiming to Complete Feasibility Study Within the Year

[Asia Economy Reporter Donghoon Jung] POSCO Group is collaborating with 'Aprotium,' the largest hydrogen production and sales specialist company in Korea, to advance the clean hydrogen business.

On the 28th, POSCO Holdings signed a Memorandum of Understanding (MOU) for cooperation in the clean hydrogen business with POSCO Engineering & Construction and Aprotium. The signing ceremony held at the POSCO Center in Seoul was attended by Juik Cho, Head of the Hydrogen Business Promotion Team at POSCO Holdings; Mincheol Kim, Head of the Plant Business Division at POSCO Engineering & Construction; and James Kim, CEO of Aprotium.

Juik Cho, Head of the Hydrogen Business Promotion Team at POSCO Holdings, stated, "Starting business cooperation with Aprotium, we plan to actively promote the domestic blue hydrogen business. This collaboration will be a milestone for domestic clean hydrogen production utilizing CCU (Carbon Capture and Utilization) and will become Korea's first hydrogen co-firing power generation project that uses hydrogen mixed as a fuel in existing LNG power plants."

James Kim, CEO of Aprotium, said, "If the three companies advance mutual discussions based on this MOU and connect them to actual business, it will be an important turning point for the supply and use of clean hydrogen in Korea. We will do our best to contribute to achieving the national carbon neutrality goal through continuous business expansion." Aprotium is the largest hydrogen specialist company in Korea, supplying about 40% of industrial hydrogen distributed domestically, and is also a producer and seller of liquefied carbon dioxide.

Mincheol Kim, Head of the Plant Business Division at POSCO Engineering & Construction, emphasized, "Based on POSCO Engineering & Construction's differentiated EPC capabilities and project execution experience, we will successfully promote the construction sector of this clean hydrogen project."

Through this MOU, the three companies agreed to jointly promote a CCU-based blue hydrogen business in the metropolitan area. They plan to invest over 200 billion KRW by 2026 to install natural gas reforming and carbon dioxide capture facilities, produce 40,000 tons of hydrogen annually, and fully recover the carbon dioxide generated to use it as industrial raw materials such as semiconductor process gases and dry ice.

Blue hydrogen is produced using fossil fuels such as natural gas, and the carbon dioxide generated during hydrogen production is captured, separated, stored, and utilized.

POSCO Holdings will procure natural gas, the raw material for hydrogen production, and be responsible for the production and sales of the produced clean hydrogen. Additionally, through cooperation with domestic power companies, they plan to introduce hydrogen co-firing power generation technology and produce over 950 GWh of clean electricity annually. POSCO Engineering & Construction will handle the design and engineering of clean hydrogen production facilities, while Aprotium will support the operation and management of hydrogen production facilities and be responsible for capturing, liquefying, and selling carbon dioxide.

POSCO Group and Aprotium plan to complete the ongoing business feasibility study, which started in March, within this year and proceed with site selection for facility investment in 2023.

Meanwhile, the three companies also agreed to jointly conduct research for the production of blue ammonia overseas and its introduction into Korea, in addition to the domestic clean hydrogen production business.