POSCO Group announced plans on October 7 during a national report meeting on the Korean Green Transition (K-GX) strategy, chaired by President Lee Jae-myung, to establish a decarbonized industrial ecosystem based on steel GX.
The K-GX strategy aims to achieve carbon neutrality while promoting economic growth through three main directions: new growth engines, inclusive GX, and sustainable GX, focusing on the green transition across various industries.
POSCO Group emphasized that the steel GX should be approached not just at the individual company level but as an industrial ecosystem that integrates clean energy, technology, markets, and policies.
To this end, POSCO Group plans to collaborate with the government to create an ecosystem that connects clean energy supply to low-carbon steel utilization, centered around its hydrogen reduction steelmaking technology, HyREX. The company aims to gradually transition to a low-carbon production system through technology development and demonstration.
POSCO Group explained that the hydrogen reduction steelmaking process requires stable and economical clean energy supply due to its continuous 24-hour operation. A robust supply of large-scale electricity and clean hydrogen is essential for the process transition and the advancement of steel GX.
They also proposed creating a 'green premium market' to ensure that the value of low-carbon steel is reflected in market prices. This includes advocating for policies that support low-carbon steel standardization and green purchasing incentives.
To facilitate this, POSCO Group suggested a public-private partnership framework called 'TIMUP,' which encompasses technology, installation, market, utility, and policy. In this structure, companies will handle technology development and facility upgrades, while the government will support the clean energy supply foundation, low-carbon market creation, and infrastructure development.
As a starting point for steel GX, POSCO Group proposed a southeastern cluster centered around Pohang. By 2028, they plan to establish a 300,000-ton HyREX demonstration facility and create a steel decarbonization cluster connecting clean hydrogen supply chains with the Pohang and Ulsan industrial complexes. The company anticipates this initiative will generate approximately 6 trillion won in economic benefits, create 14,000 jobs, and achieve an additional annual carbon reduction of 560,000 tons in the southeastern region.
Following the establishment of the HyREX demonstration facility in the southeastern cluster, POSCO Group plans to expand the application of steel GX to the southwestern region centered around Gwangyang.
Lee Joo-tae, CEO of POSCO Holdings, stated, "Steel has been the backbone of the industry for over half a century, growing alongside South Korea's manufacturing sector. Under the government's K-GX strategy, we will work together with the public and private sectors to create a low-carbon market and establish a decarbonized industrial ecosystem based on the supply of economically viable clean energy, while growing alongside local communities and fulfilling our role in national carbon neutrality and the green transition of manufacturing."
Additionally, POSCO Group plans to promote the decarbonization of steel products supplied to advanced industries such as mobility, AI data centers, and robotics.
Meanwhile, POSCO is in the process of establishing a 300,000-ton HyREX demonstration facility in Pohang, aiming for completion by 2028, with plans to secure commercial hydrogen reduction steelmaking technology by 2030 following the demonstration phase.
* This article has been translated by AI.
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