POSCO International embarks on green push for CCS in U.S.

[Courtesy of POSCO International]

POSCO International Corp., the trading arm of South Korean steelmaker POSCO, has rolled up its sleeves to boost its carbon capture and storage (CCS) business in the U.S.

POSCO International said Wednesday that it has been selected as the preferred bidder for a CCS project led by the Texas General Land Office. The Korean company formed a consortium with energy companies in Spain, U.S., and Japan. POSCO International holds a 10 percent stake in the consortium.

The project site is located offshore Corpus Christi in Texas. The size is 578 square meters, which is equivalent to the size of Seoul.

Texas boasts a coastal region suitable for CCS projects, as it is crowded with various carbon emitters, such as power grids, making it a proper site for carbon capture and storage.

POSCO International will conduct several assessments on the site, including geological testing, to determine whether the CCS project is feasible.

Under the project, carbon dioxide will be injected into the reservoir through a submerged pipeline to capture and store a total of 600 million metric tons of carbon emissions. The value amounts to 13.5 trillion won.

CCS is seen as a highly profitable business in the U.S.

The U.S. government offers a subsidy of $85 for every metric ton of carbon emissions captured from CCS technology.

Companies committed to reducing their carbon footprint, such as steel manufacturers, pay their CCS partners about 20 percent of the subsidies. Based on a rough calculation, CCS firms earn $17 for every metric ton of captured carbon emissions.

With the latest CCS project, POSCO International is expected to earn 1.35 trillion won in sales, but the sales volume can increase if the U.S. subsidies rise.

POSCO International aims to put more effort into its CCS business by establishing a local operation in the U.S. later this month.