POSCO, the driving force behind Korea’s manufacturing industry for the past 50 years, is embarking on a groundbreaking journey to develop hydrogen reduction Ironmaking technology.
With a goal of achieving carbon neutrality by 2050, POSCO aims to transform the steel industry and establish a new paradigm by shifting from coal to hydrogen. Let’s delve into the history and future of POSCO as it sets the stage for a sustainable ironmaking legacy.
In 1973, Korea’s first integrated steel mill, the Pohang works, marked a significant milestone in the nation’s economic development. Despite previous failed attempts, the completion of the first phase of the Pohang works was made possible through robust government support and the dedication of exceptional talents. This monumental project attracted massive investments and resources, reflecting the national importance placed on the steel industry.
POSCO’s steel production not only propelled the domestic manufacturing sector but also served as a lever for major companies’ growth. High-quality steel produced by POSCO at affordable prices facilitated advancements in shipbuilding and automobile manufacturing. The steelmaker’s products became integral to the Korean manufacturing industry’s leap forward, fueling economic progress.
Present and Future: POSCO’s Resilience and Carbon Neutrality Ambitions
As of 2023, POSCO boasts impressive statistics, with multiple blast furnaces and FINEX units contributing to substantial crude steel production and record-breaking sales figures. Despite facing challenges like the recent typhoon-induced flooding, POSCO demonstrated resilience by quickly restoring operations, showcasing its strength even in times of crisis.
Looking ahead, POSCO aims to create its second legacy by developing hydrogen reduction Ironmaking technology, which eliminates the need for coal. The company envisions a gradual conversion of existing production methods, including blast furnaces, and is actively working on commercializing the technology. By 2030, POSCO plans to achieve the development of commercial hydrogen reduction Ironmaking technology, with a subsequent conversion of blast furnace facilities by 2050.
POSCO’s pivotal role in the steel industry’s carbon neutrality efforts cannot be overlooked. The company conducts extensive research and development in collaboration with global steelmakers, sharing insights and expertise to accelerate the transition to hydrogen reduction Ironmaking technology. By participating in international forums and exhibitions, POSCO actively engages with the global community, advocating for its vision and goals related to carbon neutrality.
POSCO’s pursuit of hydrogen reduction Ironmaking technology requires comprehensive national support, akin to the government’s commitment to the steel industry 50 years ago. Active policies and support mechanisms led by the government and relevant agencies are crucial for Korea to regain its leadership in the steel industry and seize new opportunities. The transition to hydrogen reduction is an essential prerequisite and survival strategy for the national industry.
Countries worldwide recognize the significance of carbon neutrality and provide unprecedented support to steel companies. Germany and the European Union, for example, offer substantial funding for infrastructure development and the transition to green steel. To stay competitive, Korea must establish policies and institutional support for HyREX development, designate hydrogen reduction Ironmaking technology as a national strategic technology, and foster a carbon-neutral value chain.
As POSCO celebrates the 50th anniversary of the Pohang works, it enters the second stage of the steel industry with unwavering determination. The company is not only a key player in Korea’s industrial renaissance but also recognizes its responsibility to safeguard the future of Korean manufacturing. Amid the era of carbon neutrality, POSCO strives to establish policies and institutional support that will enhance the competitiveness of the domestic manufacturing industry and transform challenges into opportunities for economic growth.
POSCO, at the forefront of these transformative changes, will continue to build upon its accumulated experiences and capabilities to become an even stronger company for the next 50 years. With a resolute commitment to carbon neutrality and sustainable ironmaking, POSCO is poised to shape the future of the steel industry.
