Korean steelmakers accelerate advance into green energy sector

Choi Jeong-woo, right, speaks next to the Prime Minister of Australia, Anthony Albanese, to discuss future eco-friendly projects. [Image source : Yahoofinance]

South Korean steel firms are accelerating their advance into the sustainable, green energy sector, ranging from hydrogen power to secondary battery materials, amid the world’s fast low-carbon energy transition.

Choi Jeong-woo, CEO of POSCO Group, South Korea’s largest steel making business group, met with Australian Prime Minister Anthony Albanese in Australia on Thursday (local time) and discussed eco-friendly business cooperation, the company said Friday.

During the meeting, Choi shared the company’s green vision and efforts, such as hydrogen-based steel production technology development, with Albanese. The Korean steel giant emphasized that Australia is a key partner for POSCO’s hydrogen business.

POSCO plans to produce green hydrogen through solar power, wind power and other renewable energy sources, in Australia, to produce hot briquetted iron (HBI). For this, POSCO together with its partners will invest $40 billion - $28 billion in renewable energy-based hydrogen production and $12 billion in green steel sector, in Australia through 2040.

Other Korean steel and metal firms are also actively seeking growth through green business.

Young Poong, a global leader in non-ferrous metal production, and its affiliate Korea Zinc have been actively expanding their secondary battery materials business.

Young Poong recently developed technology for recycling lithium, a key material used in secondary battery cells.

Korea Zinc is driving new business development through hydrogen, battery materials, and resource recycling businesses. It has been actively forging partnerships with sectoral leaders, including battery giant LG Chem and energy solutions provider Hanwha, for co-investment and technology collaboration.

SeAH Besteel will start using power generated through solar farms for steel production in Korea from the first half of 2023.