South Korea’s POSCO Group merged its trading arm POSCO International with POSCO Energy to launch an integrated energy company, as reported by the Korean Economic Daily on November 4. In January 2023, the two enterprises will be restructured into one specialized energy entity with annual sales of KRW40tr (USD28.2bn). The new entity will allocate KRW3.8tr (USD2.7bn) to energy businesses through 2025 to expand and upgrade its liquefied natural gas (LNG) value chain and explore green energy businesses such as hydrogen. Specifically, around KRW200bn (USD141m) will be spent on developing renewable energy projects, with an aim to boost the company’s 0.1 gigawatts (GW) renewable power generation capacity sevenfold by 2025. The new firm also set out a plan to expand its inactive ammonia (hydrogen) storage tank to raise storage capacity to 100,000 kiloliters (kl) by 2025 and 510,000kl by 2030. 

The merger will promote the new entity’s global competitiveness by completing the value chain in the decentralized LNG sector, according to POSCO Group. The group also vows to become a global corporation committed to eco-friendly energy and protecting South Korea’s national energy security. POSCO group aims for a 20% reduction in carbon dioxide emissions by 2030 and 40% by 2040, before achieving net-zero emissions by 2050. To realize the target, it raised USD1.3bn by issuing convertible green bonds in August 2021 and pledged to use the proceeds for expanding the rechargeable battery materials and hydrogen businesses.

Sources:

https://www.kedglobal.com/energy/newsView/ked202211040014

https://newsroom.posco.com/en/posco-pledges-to-achieve-carbon-neutrality-by-2050-and-lead-low-carbon-society/

https://www.kedglobal.com/corporate-bonds/newsView/ked202108150003