South Korean steelmaker POSCO Holdings Inc. has signed an agreement with Oman’s state-owned hydrogen energy developer Hydrom to set up a green hydrogen plant in Oman, a port town in Oman.

Under the agreement, the 5-gigawatt renewable energy plant will develop and produce green hydrogen at the 340-square-kilometer site for the next 47 years, with a production capacity of green hydrogen of 220,000 tons per year.

The construction was expected to start in 2027, and the first batch of green ammonia to South Korea will be arranged in the second half of 2030.