POSCO Group Accelerates Future Energy Collaboration with Petronas Group

Chairman Choi Jung-woo "Concrete CCS Business, Achieving Carbon Neutrality by 2050"

Choi Jung-woo, Chairman of POSCO Group, is discussing the establishment of a cooperation system in future energy sectors such as CCS with Tunku Muhammad Taufik, CEO of Petronas, in Kuala Lumpur, Malaysia, and is taking a commemorative photo on the Petronas Tower Skybridge. Photo by POSCO

Choi Jeong-woo, Chairman of POSCO Group, met with Tunku Muhammad Taufik, CEO of Petronas Group, at the Petronas Twin Towers in Kuala Lumpur, Malaysia on the 29th to discuss ways to expand cooperation in future energy sectors including CCS (Carbon Capture and Storage) and hydrogen business.

Chairman Choi said, "POSCO Group plans to actively engage in CCS and hydrogen business to achieve ‘2050 Carbon Neutrality,’ and we hope that cooperation between the two companies will strengthen in areas of mutual interest such as promoting cross-national carbon capture, transportation, and storage business models and hydrogen business together with Petronas."

In response, CEO Tunku Muhammad Taufik stated, “Petronas will leverage its concentrated technological capabilities and experience to create solutions to achieve ‘2050 Carbon Neutrality’ including hydrogen and CCS. In this process, we will expand strategic partnerships across industries with companies sharing the same philosophy, covering the entire oil and gas value chain and future low-carbon energy supply.”

POSCO Group is developing the hydrogen reduction steelmaking process as a core technology to achieve carbon neutrality by 2050. In this process, it is promoting the CCS business as a bridge strategy by capturing carbon dioxide emitted from existing steel mill facilities and domestic blue hydrogen production and transporting and storing it overseas.

Since 2021, Petronas Group and POSCO Group have conducted a 15-month study on capturing carbon dioxide generated from POSCO steelworks and storing it offshore in Malaysia, and are currently evaluating the feasibility of the project based on the results. Once the project is confirmed, they plan to hold closer consultations to promote a cross-national carbon capture, transportation, and storage business model.

Additionally, the two companies have agreed to discuss jointly promoting clean hydrogen projects such as green hydrogen and blue hydrogen.

Petronas Group is a global energy and solutions company operating in over 100 countries worldwide and is included in the ‘Fortune Global 500’ list.

Petronas has long cooperated with POSCO Group in the LNG business, and in 2021, they signed mutual agreements in the hydrogen and CCS fields. Notably, in May of last year, CEO Tunku Muhammad Taufik and his delegation visited the POSCO Center in Seoul to discuss expanding cooperation with Chairman Choi Jeong-woo.

Meanwhile, POSCO Group signed MOUs with Petronas Group in August and December 2021 for cooperation in hydrogen business and CCS business, respectively, continuously expanding the scope of collaboration in future energy fields. Especially following last year, it is expected that cooperation between the two companies will accelerate through this meeting of top executives.