Posco to power furnaces entirely with hydrogen to become emission free

Posco, Korea’s household steel mill and traditional carbon emitter, will power furnaces entirely with hydrogen by spending 30 trillion won ($34 billion) to develop decarbonizing technology by 2040 in partnership with steel peers and the government.

The country’s top steelmaker has already commenced on research to develop the so-called hydrogen-based reduction ironmaking process and conversion technology with an aim to complete the national project by 2040, said Yoo Byeong-og, vice president and head of industrial gas and hydrogen business at Posco, in a press conference on Wednesday.

“The current furnace type will be steadily changed into the decarbonizing steelmaking until 2050,” he pledged.

Steelmaking typically generates hefty amount of greenhouse gases because of the coke-using iron ore reduction process that utilizes a chemical reaction between iron oxide and carbon monoxide sourced from heating coke fuel in a blast furnace. The coking coal process to reduce iron ore emits nearly 2 tons of carbon dioxide per 1 ton of iron.

Posco has developed Finex iron-making technology to reduce emissions by a quarter from traditional levels.

But when hydrogen gas is used in place of coke, the furnace can emit water vapors only.

Under the ambitious hydrogen scheme, Posco will hold the first hybrid international forum Hydrogen Iron & Steel Making Forum 2021 (HyIS 2021) to share the most advanced hydrogen ironmaking technology and discuss collaborated approaches at the Grand Intercontinental Seoul Parnas in Seoul on Oct. 6-8.

“It takes time and costs a lot of money to develop the decarbonizing technology as a company. To fast realize the hydrogen dream, steelmakers are in desperate need of industrial cooperation,” said Kim Hak-dong, head of steel business at Posco.

Posco will also focus on using hydrogen for power generation business, another mainstay of its business. It plans to increase the use of hydrogen as fuel in its LNG thermal power plant with an aim to operate hydrogen-fueled gas turbines for power generation.

Logistics trucks will be replaced with hydrogen cars, and hydrogen charging stations will be established near its Pohang and Gwangyang steel mills.

Posco estimated the transition into hydrogen steelmaking requires 3 million tons of hydrogen per year and power generation 2 million tons. It already set the goal of producing 5 million tons of hydrogen by 2050.

It estimated the total cost to realize its hydrogen-based green steelmaking and power generation goal at about 30-40 trillion won.

“Special government aid, tax benefits and R&D support will be needed for the industry,” added Kim.

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