Engie and Posco pursue huge green hydrogen project in Pilbara to feed green steel

Global energy giant Engie and South Korea steel maker Posco have agreed to work together on a major green hydrogen project in the Pilbara in an important step towards the creation of a green steel industry in Australia.

The two companies announced late Friday that they would conduct a feasibility study into building a “significant” green hydrogen project – potentially comprising wind, solar, electrolysers and pipelines – that will supply a hot briquettes iron plan producing green iron in Port Hedland.

The study will look at inland renewable energy sites in the Pilbara, including for wind and solar generation, as well as a hydrogen electrolyser, large-scale storage capability and pipeline capable of delivering green hydrogen to Posco’s HBI plant.

There was no indication of the size of the project, although the two companies are working together on a project in Oman that will build 5GW to supply a green ammonia project with a capacity of 1.2 million tonnes per year.

Engie is already building one of Australia’s biggest hydrogen electrolyser projects, a 10MW electrolyser at the Yara fertiliser plant near Karratha, supported by 18MW of solar and an 8 MWh battery storage system, which could also lead to a much larger green renewable and hydrogen projects in the Pilbara.

Riz de Buyserie, the head of Engie Australia & New Zealand, a joint venture with Japanese giant Mitusi and Co, said seveloping green hydrogen as a feedstock to reduce heavy manufacturing emissions is key to helping cut emissions.

“Business and the community in the Pilbara can see the opportunities and benefits to decarbonising,” he said in a statement.

“This also means more jobs in new industries and providing a boost in economic activity across the region in the short and long term.

“Australia is a market where ENGIE is actively looking to grow its hydrogen operations, and we’re optimistic that this study will help us progress a second significant hydrogen development in the Pilbara, to help achieve the net zero goals of another hard-to-abate industry.”

Posco says it aims to build a green hydrogen industry that can be integrated into the production of green steel in Australia.

“Posco Group will do more than simply produce export-bound hydrogen in Australia. We will add value by investing not only in producing hydrogen but also in developing hydrogen-using industries,” said the head of Posco’s hydrogen business team, Ju-ik Cho.

Green hydrogen will be utilised as an agent to reduce iron ore through Direct Reduced Iron (DRI) technology and Hot Briquetted Iron) production. It is a key component for the production of green steel.

“Producing green steel would make WA a world player in the green industry, with current steel manufacturing generating more than seven per cent of global carbon emissions,” state energy minister Bill Johnston said in a statement. The study is expected to be completed in early 2024.