6 companies agree to cooperate on developing clean fuels

Industry

Published: 24 Feb. 2022, 16:22

6 companies agree to cooperate on developing clean fuels

Executives from Posco, Posco Energy, Samsung C&T, GS Energy, Korea National Oil Corporation and Korea Southern Power pose for a photo after they signed an agreement to cooperate on developing a stable supply of clean fuels Wednesday. [POSCO]

Six Korean companies including Posco and Samsung C&T have agreed to work together to promote the transition to clean energy, pledging to build a clean energy terminal in the eastern part of the country.

They signed a memorandum of understanding (MOU) Wednesday and promised to join forces to achieve a stable supply of clean fields, such as hydrogen and ammonia. Other companies involved are Posco Energy, GS Energy, Korea National Oil Corporation and Korea Southern Power.

Hydrogen and ammonia are considered eco-friendly sources of energy as they produce no carbon dioxide during combustion.

The six companies vowed to cooperate in building infrastructure to bring in and store clean fuels produced overseas. They also pledged to construct an energy terminal in eastern Korea, though the specific location has not been disclosed.

Posco said the joint effort is to "support the country's plan of achieving carbon neutrality by 2050," and to "contribute to reducing greenhouse gas emissions and accelerating the hydrogen economy."

Posco has been focusing on the hydrogen business lately, with the goal of becoming a global top 10 hydrogen producer with around 7 million tons of annual production capacity through 2050.

BY SARAH CHEA [chea.sarah@joongang.co.kr]