1. POSCO International’s $1.6B Investment – What Happened?

POSCO International has committed $1.635 billion to replace its Incheon LNG power plants 3 and 4 with new, hydrogen co-firing enabled facilities. With construction slated to begin in October 2025 and completion by the end of 2030, this project is expected to play a crucial role in expanding POSCO International’s energy portfolio and strengthening its competitiveness in the future energy market.

2. Why This Investment?

This investment goes beyond simply replacing aging infrastructure. It addresses key strategic goals, including:

  • Leading the Green Energy Transition: Implementing hydrogen co-firing technology to reduce carbon emissions and reinforce ESG commitments
  • Securing Future Growth Engines: Establishing a foothold in the hydrogen energy market and securing a long-term revenue stream
  • Strengthening the LNG Value Chain: Enhancing LNG business competitiveness in conjunction with LNG terminal expansions

3. The Impact – Opportunities and Risks

Opportunities

  • Strengthened ESG profile and enhanced corporate image
  • Stable revenue generation through hydrogen co-firing and securing future growth drivers
  • Expansion and synergy creation within the LNG value chain

Risks

  • Increased financial burden due to substantial investment costs
  • Global economic slowdown and heightened energy market volatility
  • Investment uncertainty stemming from interest rate and exchange rate fluctuations
  • Operational risks associated with hydrogen co-firing technology

4. Action Plan for Investors

Investors should focus on the long-term growth potential rather than short-term stock price fluctuations.

  • Establish a long-term investment strategy: Consider the growth of the green energy market and the company’s long-term vision.
  • Continuously monitor risk factors: Pay attention to macroeconomic variables, energy market volatility, and investment progress.
  • Review company disclosures and IR materials: Gain insights into detailed investment information and management’s future strategies.