POSCO, the South Korean steelmaker, is set to commence construction this month on a pilot facility aimed at hydrogen-based steelmaking. The facility, located at the Pohang steel complex in North Gyeongsang Province, will have a capacity of 300kt/yr. With an anticipated completion date of 2026, the plant will focus on testing the production of low-carbon steel, which is expected to significantly reduce the company's carbon emissions by up to 90%.
Distinguishing itself from competitors, POSCO claims that the pilot plant will be the world's first to employ fluidized bed reduction reactors (HyREX). This innovative technology, based on the company's original fine iron ore reduction process, utilizes hydrogen to produce direct reduced iron (DRI). By employing this method, POSCO aims to establish a leading position in the industry and work towards achieving carbon neutrality by 2050.
While other global steelmakers are still in the experimental stages of developing hydrogen-fueled steelmaking technology or resorting to a combination of hydrogen and fossil fuels to power furnaces, POSCO plans to make significant strides in adopting sustainable practices.
POSCO estimates that the transition to hydrogen-based steel production will come at a considerable cost of up to 40 trillion won ($30 billion). This estimate takes into account the expenses associated with converting blast furnaces and making necessary investments.
Overall, POSCO's groundbreaking efforts to establish a pilot facility for hydrogen-based steelmaking signify a significant step towards reducing carbon emissions in the steel industry and promoting sustainable practices.
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