POSCO Holdings, a leading company in the steel industry, has announced plans for a business collaboration with CF Industries, the world’s largest ammonia producer, to produce blue ammonia in the United States. Blue ammonia is a form of ammonia made from blue hydrogen, which involves the removal of carbon dioxide through Carbon Capture and Storage (CCS) technology.
On the 14th, POSCO Holdings signed a Joint Development Agreement (JDA) term sheet with CF Industries to promote the blue ammonia business in Louisiana, USA. CF Industries owns large-scale ammonia production plants in the United States and Canada, with an annual production capacity of 9 million tons.
The Louisiana Blue Ammonia Project, based on Auto-Thermal Reforming (ATR) and CCS technology, is expected to significantly reduce carbon dioxide emissions by over 90% compared to existing ammonia production methods. It will also benefit from subsidies under the US Inflation Reduction Act.
ATR technology is an innovative and environmentally friendly manufacturing process that generates hydrogen using self-generated heat through oxygen injection, unlike traditional methods that burn natural gas.
POSCO Holdings has future plans to transport the ammonia produced from the Louisiana project to Korea, where it will be converted to hydrogen. This hydrogen will then be used for hydrogen reduction steel production and hydrogen cogeneration. This move is in line with POSCO Group’s strategy to establish an economical and stable global hydrogen and ammonia supply chain.
Yoo Byeong-ok, Vice President and General Manager of Eco-Friendly Materials for the Future at POSCO Holdings, stated that the United States is one of POSCO Group’s core strategic countries. He emphasised the company’s goal to participate in the clean mixed combustion bidding market in addition to the blue ammonia project.
In addition to the collaboration in the United States, POSCO Holdings has signed a comprehensive Memorandum of Understanding with various domestic and foreign partners for green hydrogen business and low-carbon solution cooperation. These partnerships include Argentina’s YPF Group, Thailand’s PTTEP, and Korea Southeast Power.
POSCO Group is actively developing green and blue hydrogen projects and aims to establish a 7 million ton hydrogen production system by 2050. These projects are focused on strategic countries with robust renewable energy infrastructure, such as Australia, the Middle East, and North America.
As POSCO Group continues its efforts towards carbon neutrality, the collaboration with CF Industries and other partners marks a significant step towards a more sustainable future. The production of blue ammonia will contribute to reducing greenhouse gas emissions and promoting a greener economy.
Source: Kim Jin-hee, Te Reporter
Ammonia production Pjt in Louisiana, USA. Promote detailed plan and budget review… In the future, it will be domestically transported and supplied to hydrogen reduction steel production and hydrogen co-generation power generation.
POSCO Holdings is pursuing a business collaboration with CF Industries, the world’s largest ammonia producer, to produce blue ammonia in the United States.
Blue ammonia refers to ammonia made from blue hydrogen by removing carbon dioxide through CCS (Carbon Capture and Storage) technology.
On the 14th, POSCO Holdings signed a JDA (Joint Development Agreement) term sheet with CF Industries at KINTEX in Ilsan, where ‘H2 MEET 2023’ is being held, to promote the blue ammonia business in Louisiana, USA.
CF Industries owns large-scale ammonia production plants in the United States and Canada, with annual ammonia production reaching 9 million tons.
Both companies intend to review the specific plan and budget of the blue ammonia production project based on the terms and conditions of the main transaction.
The Louisiana Blue Ammonia Project, based on ATR technology and CCS technology, is expected to be able to dramatically reduce carbon dioxide emissions by more than 90% compared to existing ammonia production methods, and will also benefit from subsidies under Act US Inflation Reduction ( IRA).
ATR (Auto-Thermal Reforming) is an eco-friendly manufacturing technology that produces hydrogen using self-generated heat through oxygen injection, unlike existing technologies that produce hydrogen by burning natural gas.
POSCO Holdings plans to ship ammonia produced from the Louisiana project to Korea in the future, convert it to hydrogen, and use it for hydrogen reduction steel production and hydrogen cogeneration.
“The United States is one of POSCO Group’s core strategic countries, pursuing an economical and stable global hydrogen/ammonia supply chain,” said Yoo Byeong-ok, Vice President and General Manager of Eco-Friendly Materials for r Future at POSCO Holdings “We will also consider participating in the clean mixed combustion bidding market,” he said.
POSCO Group is developing various green and blue hydrogen projects focusing on strategic countries with excellent renewable energy infrastructure, such as Australia, the Middle East, and North America, in order to achieve carbon neutrality and establish a 7 million ton hydrogen production system by 2050.
Meanwhile, POSCO Holdings signed a comprehensive Memorandum of Understanding on green hydrogen business and low-carbon solution cooperation with a number of domestic and foreign partners, including Argentina’s YPF Group, Thailand’s PTTEP, and Korea Southeast Power, on the 13th and the 14th.
Hello Te Reporter Kim Jin-hee |
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