POSCO International [047050:KS], the trading and energy unit of South Korean steelmaker POSCO Holdings [005490:KS], is set to participate in an offshore carbon capture and storage (CCS) project in Texas, as reported by the Korea Economic Daily on September 6. An international consortium joined by POSCO International, Spain’s Repsol [REP:SM], America’s Carbonvert, and Japan’s Mitsui E&P was selected as the preferred bidder for the Texas state government’s CCS project. This initiative aims to capture and store more than 600 million tons of carbon dioxide (CO2) off the coast of Corpus Christi in southern Texas over the coming decades. The Texas coastal region, known for its numerous oil and gas drilling and exploration ventures, is considered an ideal location for CCS. This is due to the regional demand for decarbonization and the presence of existing oil and gas pipelines, according to POSCO International.
POSCO International’s participation in this project aligns with the US government’s substantial incentives for decarbonization technologies. The Inflation Reduction Act (IRA), introduced last year, has increased government subsidies for capturing carbon dioxide from polluting sources, offering opportunities for profitability within the CCS industry.Furthermore, POSCO International recently announced plans to establish its American CCS operation, positioning itself for further CCS projects in the United States. As part of its goal to achieve carbon neutrality by 2050, the company is also planning to build large-scale CCS systems in South Korea and Southeast Asia, demonstrating its commitment to sustainable and decarbonization efforts.