MUSCAT: A major green hydrogen project backed by South Korean steel conglomerate POSCO for implementation at the Special Economic Zone (SEZ) in Duqm will play a significant role in the latter's hydrogen business value chain.
A blueprint of this global hydrogen business value chain was outlined at a major green energy expo held in South Korea recently. It envisions an important contribution from the multibillion-dollar green hydrogen scheme that a consortium jointly led by POSCO and global energy giant ENGIE is developing at Duqm. Other partners in the consortium include Samsung Engineering, Korea East-West Power Co (EWP), Korea Southern Power Co. (KOSPO), and FutureTech Energy Ventures Company Ltd (a subsidiary of PTTEP).
“The Oman Green Hydrogen Project is a significant undertaking to establish a 5 gigawatt (GW) renewable energy complex and produce 220,000 tonnes of green hydrogen annually,” the South Korea steelmaker said in a statement.
“POSCO Holdings achieved a remarkable feat in June by securing an expansive land area in Oman’s Duqm region, which is equivalent to half the size of Seoul. Hydrogen produced in Oman will be imported to South Korea starting in 2030 for applications in hydrogen reduction steelmaking, power generation, and industrial use,” it stated.
The Duqm venture, according to Korean industrial powerhouse, is set to be the “largest overseas green hydrogen production project undertaken by a South Korean company”.
Green hydrogen produced at the complex will be converted into about 1.2 million tonnes of green ammonia per annum for safe and efficient transportation to South Korea to power POSCO’s “hydrogen-reduction steelmaking” processes, as well as for hydrogen-blending in power generation. Part of the green hydrogen output will also be supplied to local customers in Oman, it noted.
Among the exhibits on display at the expo was a model (pictured) of the Green Hydrogen Project at Duqm, featuring the upstream renewable, midstream electrolyzer and downstream green hydrogen and green ammonia components of the mammoth complex.
Also on show were visual representations and diagrams providing an overview of POSCO Group’s vision to secure the production of 7 million-tonnes of green hydrogen capacity globally by 2050.
The Group says it is developing a range of path-breaking technologies in the hydrogen value chain to strengthen its leadership position in the hydrogen business. Notable are ammonia hydrogen extraction, high-temperature steam electrolysis, and carbonate-based blue hydrogen production technologies.
Confirming its intent to use green ammonia as a hydrogen carrier, POSCO said: “Ammonia is currently the most efficient means of transporting hydrogen, with 98% of hydrogen business projects worldwide considering ammonia synthesis and transportation methods. POSCO Holdings aims to establish a demonstration plant by 2025 for the development of ammonia hydrogen extraction technology.”
At the same time, it is weighing the adoption of high-temperature electrolyzer technology -- a process that involves electrolyzing steam at temperatures exceeding 700°C. “This technology requires minimal electricity, so it is an efficient method for hydrogen production. Efforts are underway to develop the system for commercialization,” it added.
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