Posco Holdings, E&C sign MOU with Approtium to produce clean energy

Industry

Published: 28 Sep. 2022, 13:05 Updated: 28 Sep. 2022, 15:00

Posco Holdings, E&C sign MOU with Approtium to produce clean energy

From left, Kim Min-cheol, head of Posco E&C's plant business division, Cho Ju-ik, head of Posco Holdings' hydrogen business division and Approtium CEO James Kim take a photo after signing an MOU to cooperate on blue hydrogen production Wednesday at Posco's Gangnam building in southern Seoul. [POSCO HOLDINGS]

Posco Holdings and Posco E&C signed a memorandum of understanding (MOU) with Approtium, an Ulsan-based hydrogen producer, to cooperate on the production of clean energy.

Under the agreement, the three companies will invest a total of 200 billion won ($140 million) through 2026 to build a facility to produce 40,000 tons of blue hydrogen.

Blue hydrogen is made from natural gas and generates carbon dioxide in the production process. It is comparatively eco-friendly because the emitted carbon dioxide is captured and recycled.

The companies will also build carbon capture, and utilization infrastructure in the greater Seoul area, to capture and store carbon dioxide produced during the hydrogen-making process and recycle it into industrial materials such as ingredients for making process gas for semiconductor plants and dry ice.

Posco Holdings will be in charge of producing the hydrogen and marketing it, while Posco E&C will be responsible for designing the production facilities. Approtium will support managing the facilities and condensing the captured carbon dioxide.

Approtium controls around 40 percent of the local industrial gas market. It also specializes in condensing and selling carbon dioxide.

The details about the location of the facilities will be announced next year.

The three companies signed the agreement Wednesday at Posco's Gangnam building in southern Seoul, with Cho Ju-ik, head of Posco Holdings' hydrogen business division, Kim Min-cheol, head of Posco E&C's plant business division and Approtium CEO James Kim, in attendance.

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