Posco investing $240 million in fuel cell business

Steel giant Posco is jumping into the fuel cell business in a major step to foster a future growth engine.
Korea’s top steel maker and the third-largest in the world, Posco yesterday signed a memorandum of understanding with Pohang city to build a fuel cell factory. Under the agreement, Posco Power Corp., the company’s energy affiliate, will establish a fuel cell plant with a power-generation capacity of 100 megawatts per year by 2010. Pohang city, site of Posco headquarters, and North Gyeongsang province will provide administrative and regulatory advantages. Posco Power plans to set aside 225 billion won ($240 million) for the new business by 2011.
Fuel cell refers to a next-generation source of energy that produces electricity in the process of converting hydrogen and oxygen into water. Owing to its eco-friendly feature ― it emits no harmful substances such as carbon dioxide, nigrogen oxide and sulfate ― the Ministry of Commerce, Industry and Energy has designated fuel cell technology as one of 10 growth engines for Korea.
In February, Posco signed a technology transfer contract with U.S.-based FuelCell Energy Inc., a company that has commercialized fuel cell production for the first time.

By Seo Ji-eun Staff Writer [spring@joongang.co.kr]