Ministry of Industry and POSCO Join Forces to Develop Carbon-Neutral Hydrogen Reduction Steelmaking

The government and the steel industry are joining forces to rapidly commercialize hydrogen reduction steelmaking for carbon neutrality in the steel sector.

On the 14th, the Ministry of Trade, Industry and Energy announced that it will select research institutions for the carbon neutrality technology development project next month to support the development of hydrogen reduction steelmaking technology. The carbon neutrality technology development project will provide a total of 935.2 billion KRW, including 694.7 billion KRW in national funding, by 2030, with 120.4 billion KRW allocated to the steel sector.

During the process of producing iron in a blast furnace, carbon dioxide is generated when coke (carbon), a type of bituminous coal, removes oxygen from iron ore. Hydrogen reduction steelmaking uses hydrogen instead of carbon to remove oxygen, emitting water and drastically reducing carbon emissions.

Globally, it is recognized as a key technology to achieve carbon neutrality, and countries such as Japan and Sweden are actively working to secure commercialization technologies for hydrogen reduction steelmaking.

In Korea, POSCO uniquely possesses the FINEX facility and technology, which correspond to the pre-stage of hydrogen reduction steelmaking, and is considered to be one step ahead of other countries. However, challenges remain to overcome technical difficulties such as reduction furnace temperature control and securing the stability of high-temperature hydrogen, as well as to ensure economic feasibility for the commercialization of hydrogen reduction steelmaking.

POSCO aims to complete the design technology for hydrogen reduction steelmaking by 2025 and develop a 1 million ton-scale demonstration plant by 2030. A new site will be established near the Pohang Steelworks to transition to hydrogen reduction steelmaking by 2050.

Hwang Soo-sung, Director of the Industrial Infrastructure Office at the Ministry of Trade, Industry and Energy, stated, "Having confirmed the steel industry's will and technological potential to commercialize hydrogen reduction steelmaking, we will focus all policy capabilities to support companies’ carbon neutrality efforts so that they can bear fruit and become first movers in the eco-friendly market."

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