Posco, Kepco agree to produce cleaner energy

Posco Chairman Lee Ku-taek, left, shakes hands with Kepco President Lee Won-geol at the Posco Center in central Seoul yesterday after signing an MOU. Provided by Posco

Posco, the world’s third biggest steelmaker, and the Korea Electric Power Corp. signed an agreement yesterday to collaboratively produce fuel cells.
According to a memorandum of understanding between Posco and the state-run power monopoly, also known as Kepco, they will work together in developing, manufacturing and selling fuel cells for power generation.
In the first step of the partnership, Posco will provide a 2,400-kilowatt fuel cell to Korea South-East Power Co., a subsidiary of Kepco, by next year. South-East Power now operates a 250-kilowatt fuel cell power plant. The company will perform a test run of Posco’s fuel cell, then Posco and Kepco will use what they learn for development purposes, Posco said in a statement.
Fuel cells produce electricity using external supplies of fuel and an oxidant. Commonly, hydrogen is the fuel and oxygen the oxidant. This process causes much less carbon dioxide and pollutants than generating power by burning fuels. Accordingly, the government is promoting the fuel cell industry as a growth engine for the domestic economy in the next generation.
Regarding details about the partnership, Lee Ku-taek, chairman and chief executive officer of Posco, told reporters, “It has not yet been decided whether Kepco will invest in Posco’s power generation subsidiary, Posco Power, or whether Posco and Kepco will set up a joint venture exclusively for the fuel cell business.”
Lee also said, “It is a company’s social responsibility in an era of global warming to move toward environmentally friendly businesses.”
Meanwhile, asked about Indian news reports that Posco will start construction of a steel plant in the eastern Indian state of Orissa in October, earlier than expected, Lee said, “The construction will likely start in the first half of next year as scheduled.”
Posco plans to invest $12 billion in a 12 million-metric-ton steel plant in Orissa. It will be India’s biggest foreign direct investment. The project had faced opposition, but is moving ahead since the Indian government gave its environmental approval, Posco said.

By Moon So-young Staff Writer [symoon@joongang.co.kr]