Green projects: POSCO and Adani Group to collaborate

Posco and Adani Group have agreed to explore business options, including the establishment of a green, environmentally-friendly integrated steel factory in Mundra, Gujarat.

Adani Group said in a statement that the investment might be worth up to $5 billion.

“The non-binding MoU intends to further collaborate at the group business level in various industries such as renewable energy, hydrogen, and logistics in response to carbon reduction requirements.”

In response to carbon reduction standards, the non-binding MoU inked by POSCO and Adani will see further collaboration at the group business level in multiple areas such as renewable energy, hydrogen, and logistics.

Both sides are considering numerous alternatives for collaborating and leveraging each other's technical, financial, and operational strengths.

According to Adani, the collaboration will include evaluating a combined Integrated Steel Mill in Mundra, Gujarat, based on POSCO's cutting-edge technology and R&D expertise.

In order to meet both parties' ESG commitments to sustainability and energy efficiency, POSCO and Adani plan to use renewable energy resources and green hydrogen.

POSCO's chief executive officer, Jeong-woo Choi, was quoted in the announcement as stating, “POSCO and Adani are able to come to great synergy in the steel and environment-friendly business with POSCO’s state-of-the-art technology in steel making and Adani’s expertise in energy and infrastructure. I hope this cooperation will be a good and sustainable business cooperation model between India and South Korea,”

“This partnership will contribute to the growth of the country’s manufacturing industry and the Aatmanirbhar Bharat scheme. It will also help to strengthen India’s standing in green businesses,” In the release, Gautam Adani, chairman of the Adani Group, was cited as saying.

“Able to come to great synergy in the steel and environment-friendly business with Posco’s state-of-the-art technology in steel-making and Adani’s expertise in energy and infrastructure. I hope this cooperation will be a good and sustainable business cooperation model between India and South Korea”, the two companies, according to Posco CEO Jeong-woo Choi, are competitors.

Posco-Maharashtra, a 1.8-million-tonne cold-rolled, and galvanized mill, is now operated by the South Korean steelmaker. Pune, Delhi, Chennai, and Ahmedabad are its four processing centers.