Chairman Choi Jung-woo: "POSCO to Focus on Hydrogen Reduction Steelmaking Business"

POSCO Unites Group Capabilities in Hydrogen Value Chain to Achieve Carbon Neutrality
POSCO Expresses Willingness to Collaborate with Domestic Companies in Hydrogen Business

[Asia Economy Reporter Hwang Yoon-joo] Choi Jung-woo, Chairman of POSCO Group, announced that he will focus on the hydrogen reduction steelmaking business. He also expressed willingness to cooperate with domestic companies in related businesses such as hydrogen production.

At the '2021 Hydrogen Mobility+ Show' which opened on the 8th, Chairman Choi said, "POSCO will be the company that uses the most hydrogen in the future."

POSCO Group has previously announced a goal to achieve an annual hydrogen production of 5 million tons and sales of 30 trillion KRW by 2050 by consolidating the capabilities of group companies across the entire value chain from hydrogen production to storage, distribution, and utilization.

At this Hydrogen Mobility+ Show, they comprehensively disclosed specific business strategies and progress, including hydrogen reduction steelmaking. Chairman Choi told reporters, "After today's event, I believe we can build a strong hydrogen industry ecosystem through extensive cooperation among domestic groups," and emphasized, "POSCO will focus on the hydrogen reduction steelmaking business rather than hydrogen mobility."

When asked about cooperation plans such as joint ventures with SK Group in the hydrogen business, he replied, "There will be many things after today's event."

Also on the same day, Chairman Choi attended the inaugural general meeting of the 'Korea H2 Business Summit' held at KINTEX as a representative of the co-chair companies, proposing close cooperation among private companies to revitalize the hydrogen economy and stating that POSCO Group will continue to play a leading role in South Korea's carbon neutrality.

Chairman Choi said, "Although steel is the metal material with the lowest CO2 emissions per unit, its production volume is overwhelmingly large, making it an industry with a high total annual CO2 emission," adding, "Therefore, POSCO must take a leading role in the nation's carbon neutrality, and to this end, we plan to commercialize hydrogen reduction steelmaking that emits no CO2 and fundamentally innovate the steel manufacturing process."

POSCO currently plans to continue developing hydrogen reduction steelmaking technology by gradually increasing the hydrogen concentration in FINEX, which is commercially operating in Pohang. Within the next 10 to 20 years, they aim to complete pilot testing and technology development, gradually convert existing blast furnace facilities to hydrogen reduction steelmaking facilities, and complete commercialization by 2050.

Once hydrogen reduction steelmaking is commercialized, POSCO's own hydrogen demand will reach 3.75 million tons annually, and if POSCO Energy's power plants are converted to hydrogen and ammonia power plants, an additional demand of over 1 million tons will arise. Based on this large internal demand, POSCO aims to establish the most competitive green hydrogen production system of 5 million tons worldwide by 2050, becoming South Korea's largest hydrogen consumer and supplier that satisfies internal demand and sells externally.

Meanwhile, in October, POSCO will host the world's first hydrogen reduction steelmaking forum, 'HyIS (Hydrogen Iron & Steel Making Forum) 2021,' attended by the World Steel Association and major global steelmakers. The forum will provide a platform to present carbon neutrality policies from Europe, Japan, China, and other countries, as well as the hydrogen reduction steelmaking development trends of each steelmaker, and discuss joint technology development. This is a new initiative by POSCO to propose an agenda for achieving carbon neutrality to steelmakers worldwide in line with ESG (Environmental, Social, and Governance) trends and to lead the era of green steel.

This content was produced with the assistance of AI translation services.