POSCO Shares Core Technologies for Carbon Neutrality

At the Hydrogen Reduction Steelmaking International Forum
Chairman Choi Jung-woo Proposes Open Platform
to Global Steelmakers and International Organizations

POSCO Chairman Choi Jung-woo is delivering a greeting at the 'Hydrogen Reduction Steelmaking Global Forum 2021' held on the 6th at the Grand Intercontinental Parnas Hotel in Gangnam-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Choi Dae-yeol] To accelerate carbon neutrality in the steel industry, POSCO has decided to share its core technologies with steelmakers worldwide. They proposed jointly developing hydrogen reduction steelmaking technology based on the FINEX process, which has been operational since 2007. Steel is a representative high-carbon-emission industry, and global steelmakers are each developing hydrogen reduction steelmaking in their own ways to address carbon neutrality. Since developing it independently requires considerable cost and time, the idea is to collaborate and advance the commercialization timeline.

Choi Jeong-woo, Chairman of POSCO Group, said at the Hydrogen Reduction Steelmaking International Forum (HyIS 2021) held on the 6th, "Carbon neutrality in steelmaking processes is a daunting task for individual countries or companies to undertake alone, but if the competition, cooperation, and exchange among many experts come together to share knowledge and development experience, it will arrive faster than expected." He added, "We will lead the green steel era by proposing an open development platform for hydrogen reduction steelmaking technology."

The event hosted by POSCO was attended by 29 organizations, including major steelmakers, associations, and international organizations worldwide. This was the first time global steel experts gathered under the theme of 'hydrogen reduction steelmaking.' It was realized after about a year and a half of discussions following POSCO's proposal to the World Steel Association's technical committee last year.

President Moon Jae-in said in a video congratulatory message, "Humanity has overcome numerous crises through solidarity and cooperation, and the new challenge of carbon neutrality will also be achieved by joining hands beyond borders." He added, "Steel produced without carbon emissions is expected to become the cornerstone of a new human civilization."

At this event, POSCO proposed utilizing the process based on the fluidized reduction furnace, the core of the FINEX process, as a platform technology. Unlike the traditional blast furnace method, FINEX does not require sintering or coke, making it an environmentally friendly method. It was developed by POSCO and designated as a national core technology. To encourage the development of hydrogen reduction steelmaking technology, POSCO made it available for use by competitors as well.

The hydrogen reduction steelmaking method is currently being reviewed in two ways: the shaft reduction furnace method using separately made pellets and the fluidized reduction furnace method independently developed by POSCO. The pellet method, being developed mainly in Europe and China, requires grinding, selection, and molding processes for iron ore, which may cause pellet supply issues. Additional heat supply during the reduction process is also necessary. The fluidized reduction furnace method can use powdered iron ore, which is easier to supply, without any preprocessing.

President Moon Jae-in delivers a video greeting at the 'Hydrogen Reduction Steel Global Forum 2021' held on the 6th at the Grand Intercontinental Parnas Hotel in Gangnam-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

Due to the characteristics of the steel industry, rapid technology development and commercialization are important, but having production capacity above a certain scale is also a key factor determining industrial competitiveness. Although technology development has progressed, such as Swedish steelmaker SSAB producing fossil fuel-free steel for the first time in the world last August, to widely use it in daily life, it is necessary to lower production costs by achieving economies of scale.

SSAB's pilot plant produces about 8,000 tons annually, which is less than one five-hundredth of POSCO's single blast furnace (annual capacity of 5 million tons). Considering heat treatment and other processes, the industry expects that hydrogen reduction steelmaking using the fluidized reduction furnace method will be advantageous for large-scale production. This is the background behind POSCO hosting this forum and proposing its technology.

Moon Seung-wook, Minister of Trade, Industry and Energy, said, "Producing steel through hydrogen reduction overturns the fundamentals of the carbon-based steel industry." He added, "We are preparing policies to support the development of hydrogen reduction core technologies and to stably supply green hydrogen and green electricity."

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