2. 1
1
We are facing “Inconvenient Truths”
Growing
Demand
1
Limited
Resources
2
Earth
In Pain
• Population
• Peak Oil, Iron
• Global Warming
• GDP Growth
• Food
• Earth Pollution
• Urbanization
• Water
3
• Biodiversity
Source:
3. 2
1
And the world is in action to assure our green future ...
Setting Regulations / Targets
Supportive Actions
• National CO2 emission
reduction target
Corporate guideline
• Automotive electrification
support
Infrastructure, testbed prj.
• Fuel efficiency and emission
level targets
Vehicle regulations
• Reducing consumption
technology support
R&D funds
• Energy efficiency labelling
in consumer goods
Consumer awareness
• New and renewable energy
growth plan
RPS1, FIT2, RECs3
The consensus among the global leaders is…
Global warming level at no more than 2 degrees !
1
RPS: Renewable Portfolio Standard , 2 FIT: Feed-In Tariff, 3 RECs: Renewable Energy Certificate
4. 3
2
Korea has one of the most aggressive green growth target
“Green Growth Korea Initiative”
- Become a green growth leader and respond to climate change
- Pursuing energy independence and find new growth engine
CO2
Reduction
by 2030
Reduction rate compared to BAU
10
New Growth
Engine
Support
RPS
Renewable energy portion of
total power generation
’12
’15
’20
Smart
Grid
’09
’10
’11
Green R&D Investment /
Government R&D Fund
’12
New &
Renewable
Next-gen.
Batteries
Green IT
LED
Green
Car
Water
Mgmt.
Nuclear
Technology
Carbon
Capture
Fuel
Cell
Source: Presidential Committee on Green Growth
5. 4
2
Jeju smart grid test bed is a good example …
A smart grid test bed village is in operation
in the beautiful island of Jeju.
12 Consortiums, 168 Companies involved.
- Posco, Samsung, LG, KEPCO, GS, HHI, SK, etc.
Power
Plant
New & Renewable
Smart Network
Smart
Plant
Smart
Home
Smart Consumer
Real-time Transaction
Smart
Builldings
Smart EV Charging
Source: Presidential Committee on Green Growth
6. 5
3
Leading power in Korea and leader in steel business worldwide
Key Facts
Strength
Size
History
World's Most
Competitive Steelmaker
(World Steel Dynamics ’11)
5th biggest
Steel producer
(WSA1, ’11)
Founded in 1968
Lead economic growth
of Korea
* Key Figures in year 2011
Production
Sales
Profit
Tons Crude Steel
US dollars, Consolidated
Leader in Steel Industry
Despite downturn
1
WSA: World Steel Association
7. 6
4
POSCO is widening its business portfolio to energy and materials
Steel Business as Core
Energy
Materials
Overseas
Powerplant
Energy
Materials
Fuel Cell
Off-gas Power
Generation
New &
Renewables
Steel & Iron
Plant
Construction
Urban
Development
Energy/Chemical
Plant Eng.
ICT
Solutions
IE Materials
Trading
Infrastructure
LED / Motor
Nonferrous
Materials
Steel-related
Materials
Transportation
Solutions
Nat. Resources
Development
Project
Development
8. 7
4
Energy business moving towards clean power generation portfolio
Less CO2
Posco group energy portfolio
Fuel
Cell
Off-gas
Solar
Coal/Gas
Power
• Biggest Private Supplier in Korea
• Low-calorific coal power plant
in overseas (Indonesia, Vietnam)
• Clean coal project under development
• Using hydrogen and air, fuel cell
is one of the purist energy source
• POSCO not only generates electricity,
but also produces fuel cell systems
Synthetic
Natural
Gas
Low
Calorific
Coal
Power
※ Conceptual Diagram
: Active project
Using off-gas, reducing energy
dependency on power supplier
Fuel
Cell
Biofuel
LNG
Power
Off-gas
Power
Wind
• POSCO uses around 5% of
national electricity generated
: Project under development
Timeline
New &
Renewable
• POSCO is also subject to RPS
Projects in Shinan, Tamla
to respond to RPS (Wind, Solar)
Participating in Nevada project
9. 8
4
Material business needs to be redefined targeting green business
Materials need
to become…
Lighter + Stronger + Non-pollutant
(Recyclable)
Fe
Al
• Carbon fiber:
CFRP2 panels
Mg
* Graphene, Nanotubes:
Hi-end IE Materials
• AHSS1, Al/Mg panels and frames
Lighter + Stronger +Recyclable
POSCO Body Concept for Electric Vehicle
• Amorphous Fe:
Transformers
• Rare Earth (ex. Nd):
Motor cores
Fe
C
Amorph.
RE
Electrical
Motor
Battery
System
1
• Graphite, cokes:
Anodes, electrodes
Li
• Lithium metal:
Cathodes
AHSS: Advanced High-Strength Steels,
2
CFRP: Carbon-Fiber Reinforced Plastics
10. 9
4
Partnership with Indonesia is a good example …
Capital • Know-How • Technology • Infra
Human & Natural Resources, Biz. Opportunity
• POSCO-Krakatau Steel HiMill
Indonesia
• SUMSEL-6 Low-calorific Coal Power
Business Partnership with local
Steelmaker PT. Krakatau
Appointed as main business partner.
Using low-grade coal as feedstock.
3 Bil $ Investment
3 mil. Tons crude steel capacity
1 Bil. $ Investment,
600MW capa. Power generation
• Fuel Cell Power Station
• Microalgae R&D Collaboration
KOICA1 funded (ODA2).
MOU with Bogor Agricultural University
300kW MCFC power station
Cultivation technology (Bogor) +
Biomass conversion technology (POSCO)
1
KOICA: Korea International Cooperation Agency ,
2
ODA: Official Development Assistance
11. 10
5
Korean conglomerates have leadership in green business
• Hyundai-Kia : Full xEV Lineup
• POSCO, GS Caltex, HHI:
MCFC, SOFC R&D
• OCI, Hanwha, Woongjin:
Polysillicon Leaders
• HHI, Samsung, LG, SK :
CIGS, Next Generation Solar
• RenaultSamsung:
Full EV to be launched ‘13
Fuel Cell
Powerplant
Fuel Cell
Vehicles
Solar
Energy
Full Electric
Vehicles
Smart
Grid
Wind
Energy
Lithium-ion
Batteries
• Samsung, LG, SK, POSCO:
Top2 producers in Korea
• POSCO, SKT, KT, Samsung, LG:
Global Leadership in Technology
• HHI, Unison, Hyosung:
Global Leadership in Technology
12. 11
6
Partnership is the key to success in the green business area
• Financing Know-How
• Hi-Tech
• Operational Tech
• Project Mgmt. Skills
Market Development
Resource Sharing
Common CSR programs
Co-marketing
Green co-funding
School buildings
Package deals
Open innovation
Welfare facilities
Joint venture
Exchange program
Donations
13. Korea is waiting for you !
Email: hyungkeun.park@posri.re.kr
Hyungkeun PARK
Business Analyst
Corporate Strategy, New Business Options
Corporate Strategy Research Center
POSCO Research Institute