POSCO would set up infrastructure for hydrogen supply in Pohang, North Gyeongsang Province, where its steel mill is located.

It would likewise begin transporting steel products through hydrogen vehicles instead of diesel trucks.

On Wednesday, POSCO signed a business agreement with its affiliate POSCO C&C and special purpose company Korea Hydrogen Energy Network (Kohygen) to promote cooperation.

According to the agreement, the POSCO group will establish a large diameter piping system to enable a massive hydrogen supply while keeping hydrogen prices competitive.

Kohygen will be responsible for setting up hydrogen charging stations.

POSCO expects the project to create a hydrogen-centered change in the logistics industry since it can lower the hydrogen supply price while expanding the supply capacity compared to the existing method of transport in high-pressure hydrogen trailers.

The South Korean steel giant is currently leveraging hydrogen in its steel production process. It plans to boost hydrogen production output to supply neighboring end-user companies for hydrogen mobility and fuel cell power generation.

POSCO recently collaborated with the Hyundai Motor Group to gradually introduce 1,500 hydrogen trucks. It also formed a tie-up with the Korea Hydro & Nuclear Power Co. for fuel cell power generation.