Hydrogen partners: Hancock’s Garry Korte, Posco’s Joo-tae Lee and Hancock’s Tad Watroba (left to right) agree to commence feasibility studies on hot briquetted iron in April 2022. Image via Posco
Australia’s government has taken initial steps to support South Korean steelmaker Posco’s plan to invest $40bn in the country’s green hydrogen industry, and has described the Asian nation as an important partner in the energy transition.
On December 7, the world’s sixth-biggest steel producer announced it would invest $28bn in green hydrogen and $12bn in green steel with its local Australian partners by 2040.
The group wants to combine green hydrogen with iron ore to produce low-emissions hot briquetted iron (HBI), which is used to make steel. Since April 2022 it has been conducting HBI feasibility studies with Australian miner Hancock Prospecting. Posco has also released plans to use Australia as a base to export hydrogen to South Korea.
While it is still early days, the Australia–Korea Business Council director Bill Paterson believes Posco is “deadly serious” about following through on its $40bn pledge — Australia’s second-biggest foreign direct investment (FDI) announcement on record, according to fDi Markets. “They’re very conscious of the changing energy market globally and securing what they need,” said Mr Paterson, who is also Australia’s former ambassador to Korea and regularly meets with Posco executives.