BackPOSCO to make green hydrogen, signs MoU with Greenko's ZeroC
Both the companies said that this MoU will contribute towards the mission of making India a green hydrogen hub
PremiumNEW DELHI : Global steelmaker POSCO on Thursday signed a memorandum of understanding (MoU) with ZeroC, a subsidiary of renewable energy company Greenko to make green hydrogen, and to jointly pursue opportunities in renewables, and other derivatives of green hydrogen.
In a joint statement, both the companies said that this MoU will contribute towards the mission of making India a green hydrogen hub.
Anil Kumar Chalamalasetty, CEO and Managing Director at Greenko said: “We are excited to be partnering with POSCO, this pioneering partnership will propel the transformation of India from a carbon-based fossil energy importer to an exporter of Renewable Energy derived products like Green Hydrogen, Green Ammonia and Green Molecules."
Under a memorandum of understanding signed at a trade fair on the northwestern outskirts of Seoul, POSCO Holdings and Greenko will carry out a feasibility study on green hydrogen production after discovering a proper site by the end of 2022. Greenko, which is majority owned by Singapore’s sovereign wealth fund GIC, runs about 7.5 gigawatts capacity of renewable energy facilities in India.
POSCO Holdings said that the production of green hydrogen and ammonia in India will be based on pumped-storage hydroelectricity, which generates electricity by pumping and storing water into a high-lying reservoir at night and dropping water in the daytime when power consumption is high.
“Through cooperation with Greenko, we will successfully establish a green hydrogen production model in India and prepare to supply green hydrogen and ammonia that are required in South Korea and Europe," POSCO Holdings‘ hydrogen business head Cho Joo-ik said in a statement.
The development comes at a time when energy companies in India including the government owned companies are diversifying their portfolio and investing in renewable energy as the government has set a target for the country to turn carbon neutral by 2070.
In April this year, Greenko Group and Belgium’s John Cockerill has finalised the terms of a 50:50 joint venture to set up a two akaline electrolyzer factories of a gigawatt each in India over the next 12 to 18 months to make the lowest cost hydrogen in the country for industrial users.
Investment in the green hydrogen space has gained momentum in the past few months with the government coming up with a national green hydrogen policy. In July, state-run Oil and Natural Gas Corporation (ONGC) tied up with Greenko to produced green hydrogen. Another public sector energy major Indian Oil Corporation in April tied up with L&T and ReNew Power to form a joint venture company to develop green hydrogen business in India.
The central government unveiled the green hydrogen policy in February, promising cheaper renewable power, fee waiver for inter-state power transmission for 25 years for projects commissioned before June 2025, Under manufacturers of green hydrogen or green ammonia shall be allowed to set up bunkers near ports for storage of green ammonia for export or use by shipping.
Green ammonia is used to store energy and in fertilizer manufacturing. India has set a target to produce 5 million tonnes (mt) of green hydrogen by 2030. Over the next decade, the government plans to add 175 GW of green hydrogen-based energy.
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