Engie, POSCO to study hydrogen for green iron production in Pilbara

French utility Engie SA (EPA:ENGI) and South Korean steelmaker POSCO (KRX:005490) have agreed to carry out a pre-feasibility study for a green hydrogen project in the Pilbara region of the Australian state of Western Australia.

The project aims to supply green hydrogen to POSCO’s proposed Hot Briquetted Iron (HBI) plant in Port Hedland and could possibly supply green fuel for decarbonising POSCO’s existing assets in South Korea.

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According to an Engie announcement on Monday, the study will support and improve development plans for wind and solar sites in the region, a hydrogen electrolyser, large-scale storage capacity and pipeline to POSCO’s future HBI plant.

“Australia is a market where Engie is actively looking to grow its hydrogen operations, and we’re optimistic that this study will help us progress a second significant hydrogen development in the Pilbara, to help achieve the net zero goals of another hard-to-abate industry,” commented Engie Australia and New Zealand chief executive Rik De Buyserie. In the Pilbara, the French company is advancing a green hydrogen production plant that will supply fertiliser producer Yara.

Ju-ik Cho, head of POSCO Holdings’ hydrogen business team, said that Australia is a key country for achieving POSCO Group’s carbon neutrality.

“POSCO Group will do more than simply produce export-bound hydrogen in Australia. We will add value by investing not only in producing hydrogen but also in developing hydrogen-using industries,” added Ju-ik Cho.

Engie and POSCO are also partnering on a hydrogen initiative in Oman.