Posco, the world’s seventh-largest steelmaker, aims for carbon neutrality through hydrogen-based steel production. They unveiled a pilot facility, HyREX, which produces steel using hydrogen instead of fossil fuels, drastically reducing carbon emissions to 400 kilograms per ton of molten iron, far below traditional methods.
The facility integrates four reduction furnaces and electric smelting furnaces, eliminating the blast furnace process and further cutting CO2 emissions. Posco plans to begin construction on a larger, 36-ton-per-hour facility in early 2023, targeting completion by 2027 and commercial operation by 2030. Their goal is to produce 2.5 mln tons of steel annually by 2040 and transition entirely to hydrogen by 2050.
Challenges include higher production costs, currently over 30pct more than traditional methods, which Posco aims to reduce through technological advancements and economies of scale. Additionally, managing increased electricity demand from electric furnaces remains a concern, prompting discussions with the government to align power supply plans with operational needs at their facilities in Pohang and Gwangyang.
