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South Korean steelmaker POSCO will launch a hydrogen business unit next month, eyeing to produce up to 5 million tons of hydrogen annually by 2050.
The company supplies hydrogen to its steel factories and fuel cell electric vehicles made by Hyundai Motor Co.
POSCO, the world's fifth-largest steelmaker by output, has an annual hydrogen production capacity of 7,000 tons, mostly using natural gas and byproducts from its power plants.
Amid growing demand for clean energy, POSCO vowed to develop technologies for green hydrogen, produced by using renewable energy to split water, to get closer to zero-emission goals.
The company has an annual production target of 2 million tons of green hydrogen by 2040.
Further investments would also be in hydrogen storage, distribution, and related infrastructure to generate new business opportunities in the sector, where demand is expected to rise from 1.94 million tons of hydrogen in 2030 to 5.26 million tons in 2040.
POSCO will collaborate with research agencies at home and abroad to develop related technologies.
