Fortescue agrees supply deal with Korean steelmaker in green hydrogen partnership

Fortescue Metals Group (FMG) will supply iron ore and green hydrogen to South Korean steelmaking company Posco after the two agreed to a circular partnership centred on clean energy opportunities.

As part of a four-month global tour, FMG chairman Andrew ‘Twiggy’ Forrest met Posco’s CEO Jeong-Woo Choi in December to discuss the potential of a cooperative green hydrogen business.

The lengthy business trip sought to identify renewable energy opportunities around the world that would support FMG’s ambitious plans to deliver more than 235GW of renewable capacity.

The Western Australian iron ore giant has set a carbon neutrality target of 2040, while Posco is targeting carbon neutrality by 2050. Both companies see green hydrogen as a solution to the decarbonisation process.

“FMG is a long-term contract supplier that has been stably supplying iron ore to Posco,” said Choi. “If competitive green hydrogen can be produced with cooperation between the two companies and is introduced to Korea, the era of green hydrogen in Korea will be accelerated.”

Meanwhile, Forrest added: “Green hydrogen and ammonia are important factors in reducing carbon emissions as the world is in the transition to clean energy. I hope that with Posco’s participation in the first green hydrogen project conducted by FMG, both companies can grow together.”