Korean steelmaker Posco (NYSE: PKX) said it started construction today on a $131 million fuel cell power plant.

The plant is expected to produce 100 megawatts of electricity in the southern port city of Pohang when it starts operations in 2010.

The company said it expects its fuel cell business to bring in $437 million in revenue per year by 2012.

In March, Posco's power unit acquired a 2.4 MW fuel cell power plant from Connecticut-based FuelCell Energy (NASDAQ: FCEL) (see Will new orders mean new growth for FuelCell Energy?). Posco signed a 10 year manufacturing and distribution agreement with FuelCell Energy under that deal.

Shares of FuelCell Energy are up .63% today on the news. 

The Korean plant would be the largest fuel cell power plant in the world, according to FuelCell Energy.

Posco also bought a 300 kilowatt fuel cell stack from FuelCell Energy in August.

Posco, which primarily sells its steel to the auto and shipbuilding industries, also operates in engineering and construction, building steel plants, steel-related infrastructure, and energy facilities, and in systems integration.