South Korea-based POSCO Holdings has announced that it has signed a memorandum of understanding with Malaysian state-owned oil and gas company Petroleum Sarawak (PETROS) to collaborate in the development of carbon capture and storage (CCS) business in the Malaysian state of Sarawak.
Accordingly, the parties will conduct a feasibility analysis on the project to capture, transport, and store the carbon being discharged from the operations of POSCO steelworks and from the production of blue hydrogen in Sarawak.
POSCO Group and PETROS plan to form a working group to discuss in detail everything from carbon capture in South Korea to carbon transportation to Sarawak, Malaysia, and CCS infrastructure facility construction.
Meanwhile, in September last year, POSCO Holdings signed an agreement with South Korean companies Samsung Engineering, Lotte Chemical, Malaysia’s SEDC Energy, and Sarawak Energy Berhad, to promote the Sarawak H2biscus Clean Hydrogen Project. The project is currently undergoing a feasibility study and aims to produce commercial hydrogen by the end of 2027.