ENGIE and POSCO Holdings sign an agreement for a green hydrogen venture in Australia

ENGIE, the clean energy specialist, has reportedly entered into an agreement with South Korea's POSCO Holdings to undertake a preliminary feasibility study for a green hydrogen venture in Western Australia's Pilbara region. The primary goal of this initiative is to deliver green hydrogen to the planned Hot Briquetted Iron (HBI) facility in Port Hedland by POSCO Group, which will produce eco-friendly iron.

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This assessment is anticipated to further outline plans for establishing inland sites for renewable energy, incorporating elements like wind and solar power, hydrogen electrolysis, expansive storage solutions, and a pipeline for green hydrogen transport to South Korea. This aims to further the green transition of POSCO's assets.

Rik De Buyserie, the head of ENGIE for Australia & New Zealand, emphasized ENGIE's dedication to fast-tracking a shift to a zero-carbon economy. He identified green hydrogen's role in curtailing emissions from heavy industries as pivotal.

Moreover, he highlighted the project’s potential to stimulate job creation in emerging sectors, subsequently enhancing the regional economic landscape in both the immediate and distant future. De Buyserie also mentioned ENGIE's keen interest in expanding its hydrogen-related endeavors in Australia.

Data from the International Energy Agency (IEA) has shown that the iron and steel industry contributes significantly to global carbon dioxide emissions. As a result, there's a growing momentum among manufacturers to transition from coal-dependent technologies to those that utilize green hydrogen.

On the other hand, the Institute for Energy Economics and Financial Analysis (IEEFA) has pointed out that Australia's prominent iron ore export is at risk of lagging in the move towards eco-friendly iron unless there's a hastened effort in research and development. This claim is backed by findings from the Minerals Research Institute of Western Australia.

Australia's hematite iron ore quality presents specific challenges as the green shift necessitates ores with high iron content, while most of Pilbara's deposits fall short. In light of this, POSCO has disclosed an ambitious $40 billion investment strategy in Australia, allocating a considerable amount to green hydrogen and green HBI production. Simultaneously, Japan's leading steel manufacturer, Nippon Steel, is mulling over a significant investment in green steel, possibly in Australia, as per IEEFA.

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According to the article by Procurement Resource, ENGIE and South Korea's POSCO Holdings are exploring a green hydrogen project in Western Australia to supply POSCO's future eco-friendly iron facility. The initiative includes creating renewable energy sites, hydrogen electrolysis, and a transport pipeline to South Korea. Rik De Buyserie of ENGIE highlighted green hydrogen's potential for reducing emissions and job creation. Despite challenges posed by Australia's hematite iron ore quality, POSCO is investing heavily in green hydrogen and eco-friendly iron in Australia.