1. 2012.10.22PARK, Hyungkeun POSCO Research Institute

2. 11We are facing Inconvenient Truths Growing Demand1Limited Resources2Earth In Pain Population Peak Oil, Iron Global Warming GDP Growth Food Earth Pollution Urbanization Water3 BiodiversitySource: 3. 21And the world is in action to assure our green future ... Setting Regulations / TargetsSupportive 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, RECs3The consensus among the global leaders is Global warming level at no more than 2 degrees ! 1RPS: Renewable Portfolio Standard , 2 FIT: Feed-In Tariff, 3 RECs: Renewable Energy Certificate 4. 32Korea 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 engineCO2 Reductionby 2030 Reduction rate compared to BAU10 New Growth Engine SupportRPS Renewable energy portion of total power generation121520Smart Grid091011Green R&D Investment / Government R&D Fund12New & RenewableNext-gen. BatteriesGreen ITLEDGreen CarWater Mgmt.Nuclear TechnologyCarbon CaptureFuel CellSource: Presidential Committee on Green Growth 5. 42Jeju 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 & RenewableSmart NetworkSmart PlantSmart Home Smart ConsumerReal-time TransactionSmart BuilldingsSmart EV ChargingSource: Presidential Committee on Green Growth 6. 53Leading power in Korea and leader in steel business worldwideKey FactsStrengthSizeHistoryWorld'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 2011ProductionSalesProfitTons Crude SteelUS dollars, ConsolidatedLeader in Steel Industry Despite downturn1WSA: World Steel Association 7. 64POSCO is widening its business portfolio to energy and materials Steel Business as CoreEnergyMaterialsOverseas PowerplantEnergy MaterialsFuel CellOff-gas Power GenerationNew & RenewablesSteel & IronPlant ConstructionUrban Development Energy/Chemical Plant Eng.ICT SolutionsIE MaterialsTradingInfrastructure LED / MotorNonferrous MaterialsSteel-related MaterialsTransportation SolutionsNat. Resources Development Project Development 8. 74Energy business moving towards clean power generation portfolioLess CO2 Posco group energy portfolio Fuel CellOff-gas SolarCoal/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 systemsSynthetic Natural Gas Low Calorific Coal Power Conceptual Diagram : Active project Using off-gas, reducing energy dependency on power supplierFuel CellBiofuelLNG PowerOff-gas PowerWind POSCO uses around 5% of national electricity generated: Project under developmentTimeline New & Renewable POSCO is also subject to RPS Projects in Shinan, Tamla to respond to RPS (Wind, Solar) Participating in Nevada project 9. 84Material business needs to be redefined targeting green business Materials need to becomeLighter + Stronger + Non-pollutant (Recyclable)Fe Al Carbon fiber: CFRP2 panelsMg* 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 coresFeCAmorph.REElectrical MotorBattery System1 Graphite, cokes: Anodes, electrodesLi Lithium metal: CathodesAHSS: Advanced High-Strength Steels,2CFRP: Carbon-Fiber Reinforced Plastics 10. 94Partnership with Indonesia is a good example Capital Know-How Technology Infra Human & Natural Resources, Biz. Opportunity POSCO-Krakatau Steel HiMillIndonesia SUMSEL-6 Low-calorific Coal PowerBusiness Partnership with local Steelmaker PT. KrakatauAppointed 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 CollaborationKOICA1 funded (ODA2).MOU with Bogor Agricultural University 300kW MCFC power stationCultivation technology (Bogor) + Biomass conversion technology (POSCO)1KOICA: Korea International Cooperation Agency ,2ODA: Official Development Assistance 11. 105Korean 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 13Fuel Cell PowerplantFuel Cell VehiclesSolar EnergyFull Electric Vehicles Smart GridWind EnergyLithium-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. 116Partnership is the key to success in the green business area Financing Know-How Hi-Tech Operational Tech Project Mgmt. SkillsMarket DevelopmentResource SharingCommon 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.krHyungkeun PARK Business Analyst Corporate Strategy, New Business Options Corporate Strategy Research Center POSCO Research Institute