Posco International Corp. said Tuesday it has signed an agreement with a Danish investment company to work together on the development of offshore wind power and cooperate in other green businesses.

The memorandum of agreement was signed with Copenhagen Infrastructure Partners on Monday, under which they will work to develop offshore wind power projects in Pohang, an industrial city located 262 kilometers southeast of Seoul, Posco International said in a release.

They will work together to find opportunities in the green hydrogen and green ammonia sectors.

The partnership comes against the backdrop of big potential demand for renewable energy, Posco International said.

Pohang is home to the largest steel mill complex in South Korea and many manufacturing sites, including the ones operated by Posco Future M Co., the battery and advanced component-making unit under Posco Holdings Inc.

Posco International, Posco's general trading and energy unit, plans to build a 300-megawatt offshore wind power plant complex in the southwestern county of Sinan by 2027, with a goal to boost its wind power generation capacity to 2 gigawatts by 2030.

CIP, headquartered in Copenhagen, specializes in wind power infrastructure investments, with stakes in 14 countries around the world, including South Korea. It currently oversees investments of about 28 billion euros ($30.5 billion). (Yonhap)