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POSCO signed a business agreement for engineering technology cooperation on hydrogen reduction steelmaking with the UK company Primetals on the 26th. Kim Ki-su, Head of the Low Carbon Process Research Institute at POSCO Technical Research Institute (left), and Friedemann Praul, Executive Officer of Ironmaking and Steelmaking Environment at Primetals, are taking a commemorative photo.

[Asia Economy Reporter Oh Hyung-gil] POSCO has taken its first step toward carbon neutrality by starting the construction of hydrogen reduction steelmaking facilities.

POSCO announced on the 4th that on the 26th of last month, it signed a business agreement for engineering technology cooperation on hydrogen reduction steelmaking with the UK plant construction company Primetals at the Pohang Technology Research Institute. The signing ceremony was attended by Kim Ki-soo, head of POSCO's Low Carbon Process Research Center, Friedemann Prowl, Executive Officer in charge of Ironmaking and Steelmaking Environment at Primetals, and Ashish Gupta, Chief Executive Officer.

POSCO plans to achieve carbon neutrality through its eco-friendly hydrogen reduction steelmaking model called 'HyREX.' To this end, starting this month, POSCO and Primetals, who jointly designed the FINEX facility, will begin designing the HyREX pilot plant.

Through the design, procurement, and construction (EPC) of the demo plant, POSCO aims to verify the commercial viability of hydrogen reduction steelmaking by 2030, optimize production, and gradually replace the current blast furnace facilities with HyREX-based equipment to achieve carbon neutrality by 2050.

Hydrogen reduction steelmaking is a technology that produces direct reduced iron (DRI) using 100% hydrogen and melts it in an electric furnace to produce molten iron. Since it emits no carbon, it is considered a solution for carbon neutrality in the steel industry.

POSCO is currently operating the FINEX facility, which uses a reducing gas containing 25% hydrogen, and is developing HyREX based on FINEX technology. Like FINEX, which omits the process of forming iron ore and coal into lumps and uses them in powder form, HyREX applies a method of directly contacting iron ore powder with hydrogen for reduction.

Unlike the 'shaft reduction furnace' hydrogen reduction steelmaking model being developed by major overseas steelmakers, which requires processing iron ore into hard lumps, HyREX can omit this process, allowing the use of relatively low-grade ore, which is expected to be advantageous in terms of cost competitiveness.

Ashish Gupta, Chief Executive Officer, said, "The HyREX technology, which uses powder directly, could be a long-term and fundamental solution in many regions where pellet use is difficult. Based on the experience of successfully collaborating on FINEX, let's write a new success story together."

Kim Ki-soo, head of the Low Carbon Process Research Center, said, "For the development of eco-friendly hydrogen reduction steelmaking technology, collaboration across industries including raw materials, engineering, and hydrogen centered on steelmakers is important. I hope creative and successful technology development will be achieved based on the technological capabilities of both companies."

Meanwhile, POSCO will hold the 'Hydrogen Iron & Steel Making Forum 2022' on July 12 and 13 in Stockholm, Sweden, together with Swedish steel company SSAB. General participants can join online.

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