Posco continues eco-friendly transition

Posco is planning to transition into an eco-friendly production and sales system to reduce carbon emissions, while simultaneously increasing global competitiveness and declaring carbon neutrality in 2050. This transition has three stages...

Posco showcased HyREX, its eco-friendly facility aimed at carbon neutrality at the World Climate Industry EXPO: WCE 2023, held at BEXCO in Busan from May 25 to 27. [POSCO]

Posco is planning to transition into an eco-friendly production and sales system to reduce carbon emissions, while simultaneously increasing global competitiveness and declaring carbon neutrality in 2050. This transition has three stages: The first will improve energy efficiency and replace items as well as raw materials with low-carbon fuel alternatives: The second will increase the use of scraps and also applies CCUS technology: The third will develop a hydrogen-based steelmaking technology based on the existing FINEX one, eliminating C02 generation in the steel process completely.

The current steelmaking process uses carbon dioxide that is emitted by coal in shaft furnaces as a chemical reductant for iron ore, contributing to global problems of greenhouse gases. Hydrogen-based steel production emits water instead of carbon dioxide during this process, and is thus a key process in achieving carbon neutrality.

Another way Posco aims to achieve carbon neutrality is by successfully developing its HyREX facility, which will use an eco-friendly hydrogen reduction steelmaking model, by 2030, while operating its FINEX facility, which uses reducing gas containing 25% hydrogen, for now. The quality of the DRI produced at the HyREX facility is expected to be relatively low as it uses low-grade iron ore fines in its production. To address this, Posco is developing a ESF (Electric Smelting Furnace) technology that will be optimal in dissolving low-grade DRI.

The company also launched Korea’s first low-carbon brand, Greenate certified steel, in line with its aim for carbon neutrality. Greenate products reduce their carbon emissions using the Mass Balance methodology, which distributes carbon emissions to steelmakers as they produce low-carbon products. The brand’s products are recognized for reducing carbon emissions in levels equivalent to the raw material sector (Scope3).

Posco plans to sell Greenate certified steel as well as renewable energy steel before its Gwangyang steel plant begins full operations in 2026, while pushing ahead with reducing carbon emissions with Greenate carbon reduced steel, which contributes to more than 30% of carbon emission reduction via its hydrogen-based steelmaking process.

BY PARK YE-EUN [park.yeeun@joongang.co.kr]