Green Energy Business
Onshore Wind Power
Onshore Wind Farm in Jeollanam-do
We have actively made investments in the province of Jeollanam-do, known for its superb windy environment, since the early days of the wind energy market in Korea. In 2013, we acquired a business permit to run an onshore wind farm in Jaeun-myeon, Sinan-gun, Jeollanam-do, and we have been actively running the farm since its completion in 2019. With a generation capacity of 62.7 MW, which was the largest for an onshore wind farm in Korea at the time of the project, this onshore wind power complex has an effect equivalent to planting 14 million pine trees, reducing annual emissions of carbon dioxide by about 50,000 tons.
Offshore Wind Power
Offshore Wind Farm in Sinan, Jeollanam-do
Our efforts to pioneer the wind power generation market have continued offshore. We have been working consistently to develop an offshore wind power complex of 300 MW on the ocean west of Jaeundo Island in Sinan-gun since acquiring the business permit in September 2017. On its completion, it is expected to bring about an effect equivalent to planting 85 million pine trees, as it will reduce carbon dioxide emissions by about 300,000 tons annually.
Sinan Solar Power Plant
We are pushing a solar power generation project in support of the government’s "Renewable Energy 3020" policy goal.
We operate a large-scale solar power complex with a total capacity of 14.5 MW in the area of Sinan-gun, Jeollanam-do, which was developed over three development stages. The energy complex was built on an abandoned salt field to minimize environmental damage to the surrounding areas and harnesses the abundant sunlight found in salt fields to produce energy-efficient renewable energy. This solar power complex produces an annual electrical output of 18,000 MWh, sufficient to power 5,300 households. The complex creates environmentally friendly effects equivalent to an annual reduction of approximately 7,600 tons of carbon dioxide emissions and the planting of about 2.2 million pine trees.
Rooftop Solar Power Generation
To overcome the shortage of land and limitations of terrain, we are carrying out the rooftop solar power generation business.
The plant has been in commercial operation since 2024. Annually, it generates 2,600 MWh of electricity, enough to power 760 households. This initiative also reduces 1,000 tons of carbon dioxide emissions annually, which is equivalent to planting 300,000 pine trees. We are committed to expanding our green energy business across our group.
District Heating System Utilizing Sewage Heat
We are producing energy by recycling wasted sewage heat, thereby replacing fossil energy and protecting the natural environment.
Since 2014, we have been operating the nation's first and largest “district heat supply facility that recycles waste heat energy” at Tancheon Water Treatment Center. Every day, 1.1 million tons of sewage discharged into Hangang River maintains an average temperature of 12°C even in winter. At this time, the wasted thermal energy is recovered through heat pumps and supplied as heating energy to the nearby area.
Through the “district heat supply project utilizing sewage heat,” we are currently producing and supplying heating energy that supports 20,000 households annually. As a result, this project replaces 20,000 tons of oil and reduces approximately 34,000 tons of carbon dioxide emissions annually.
Since 2014, we have been operating the nation's first and largest “district heat supply facility that recycles waste heat energy” at Tancheon Water Treatment Center. Every day, 1.1 million tons of sewage discharged into Hangang River maintains an average temperature of 12°C even in winter. At this time, the wasted thermal energy is recovered through heat pumps and supplied as heating energy to the nearby area.
Through the “district heat supply project utilizing sewage heat,” we are currently producing and supplying heating energy that supports 20,000 households annually. As a result, this project replaces 20,000 tons of oil and reduces approximately 34,000 tons of carbon dioxide emissions annually.
CCS
Carbon Capture and Storage
Carbon capture & storage (CCS) refers to a method of capturing carbon dioxide released into the atmosphere and safely and permanently storing it by injecting it into depleted oil and gas fields or saline aquifers. Particularly, this is the only technology that allows direct reduction of CO2 emissions in large volumes in sectors such as petroleum refining, chemicals, cement, and steel, where reducing CO2 emissions is challenging. As a result, CCS has become an essential element in the era of energy transition not only in Korea but also globally for achieving carbon neutrality.
CCS Value Chain
CCS is a technology that has been verified since the 1970s through the practice of enhanced oil recovery (EOR). The exploration and development of underground carbon dioxide storage sites are similar to conventional oil and gas exploration and production (E&P) businesses. Based on our E&P expertise accumulated through the development project of the Myanmar gas field, we are actively developing businesses through various partnerships with major companies overseas to secure domestic and international underground CO2 storage facilities and establish the CCS value chain. By doing so, we plan to create a CCS value chain that encompasses CO2 capture and storage in countries with abundant storage resources, such as Southeast Asian countries and Australia, and the United States, where CCS projects are already being implemented. Ultimately, these efforts are geared towards achieving carbon neutrality for POSCO Group and Korea by 2050.
CCS Business in the US
We are marking our first entry into the CCS business by becoming the first Korean company to secure two mining rights in the Corpus Christi area through an international bidding process for an offshore CCS underground storage project in Texas, the US. Collaborating with esteemed partners such as Repsol (Spain), Carbonvert (US), and Mitsui E&P USA (Japan), we are dedicated to establishing solid capabilities in the CCS sector, contributing significantly to the group’s carbon neutralization efforts.
Indonesia Joint Survey Project
Indonesia is geologically recognized for its significant potential for underground carbon dioxide storage capacity. Through a Memorandum of Understanding (MoU) with Indonesia's state-owned Pertamina, we embark on a joint cooperation for CCS and low-carbon industries. Together, we are conducting a joint CCS survey project targeting offshore depleted gas fields and salt aquifers. Our future endeavors include the pursuit of local CCS businesses in connection to emission sources of our group within Indonesia and cross-border CCS projects linked to domestic emissions.
Australia Joint Survey Project
As Australia is known for being the leader in making global CCS-related policies and technology development, we are currently conducting joint research with major partners in Australia and Australian E&P companies to evaluate the economic feasibility of CCS projects targeting depleted offshore gas fields. In addition, we plan to promote CCS commercialization in cooperation with global E&P partners to achieve POSCO Group's carbon neutrality.
Malaysia Joint Survey Project
We are conducting a joint research project with PETRONAS, the state-owned oil and gas company of Malaysia, and PETROS, a state-owned oil company of the Sarawak government, in saline aquifers and depleted oil and gas fields to assess the feasibility of the entire CCS cycle, from domestic carbon dioxide capture to offshore transportation and underground storage.
Promoting CCS Commercialization in Korea
To secure underground storage sites in Korea for carbon reduction efforts across our group's domestic subsidiaries, we are assessing the storage potential within the Ulleung Basin in the East Sea. Additionally, we are gearing up to partake in the CCS demonstration project at the Donghae gas field to enhance our CCS business capabilities and align with the national NDC goal.
Clean Hydrogen Co-fired Power Generation
As a leading clean energy company, we are expanding our business area to encompass the entire industry value chain from production to the utilization of clean hydrogen.
To transform the Incheon LNG power plant into an eco-friendly facility, we are implementing “co-fired power generation,” replacing 20% of LNG used as fuel with clean hydrogen. Through hydrogen co-firing and the replacement of old turbines with high-efficiency models, we can reduce our carbon emissions by more than 30%. To procure clean hydrogen for stable power production, we plan to participate in clean hydrogen production projects in regions such as North America, the Middle East, and Australia and secure offtake volume.
Starting with an initial scale of approximately 1 GW, we will gradually expand the project to cover all generators, ultimately achieving eco-friendly power generation. By achieving this goal, we aim to take the lead in reducing local carbon emissions by supplying clean hydrogen to nearby areas of demand.
Starting with an initial scale of approximately 1 GW, we will gradually expand the project to cover all generators, ultimately achieving eco-friendly power generation. By achieving this goal, we aim to take the lead in reducing local carbon emissions by supplying clean hydrogen to nearby areas of demand.
Establishment of a Domestic Hydrogen Infrastructure
We plan to establish a clean hydrogen supply infrastructure centered around Incheon, Gwangyang, and Pohang. In addition to implementing hydrogen co-fired power generation in Incheon, our efforts are underway to build infrastructure for supplying hydrogen for hydrogen-reduction steelmaking at steel mills in Gwangyang and Pohang. We aim to lead the domestic supply and distribution of clean hydrogen and ammonia in response to the demand for clean hydrogen used for power plants near steel mills and industrial purposes.
