15. December 2023 | The South Korean steel producer POSCO is preparing for the energy transition with its technology for hydrogen-based pig iron production.
The Group plans to complete the commercialisation of its HyREX technology by 2030 and fully convert its steel plants in Pohang and Gwangyang to the new steelmaking technology by 2050.
As POSCO announced in a recent press release, the company will replace the existing blast furnace method at the Pohang plant with the HyREX method in 2033. By 2050, the company will complete the production facilities for hydrogen–based steel production at the Pohang and Gwangyang plants (six facilities in total).
POSCO is developing a commercial process for the production of direct reduced iron (DRI) using hydrogen as the reducing gas based on HyREX technology. This is an innovative process in which iron ore is fed into a series of FINEX fluidised bed reactors. The molten iron is produced directly from iron ore fines and non–coking coal, without the need for pre–treatment of the raw materials. POSCO developed FINEX together with Siemens VAI (now Primetals Technologies) and put it into operation on an industrial scale for the first time worldwide in 2007.
POSCO drives forward the commercialisation of hydrogen reduction steel production
In July last year, the company signed a business agreement with the UK-based plant manufacturer Primetals for the construction of a HyREX pilot plant. Confirming the commercial feasibility of hydrogen–based pig iron production, the pilot plant is planned to be built by 2026. The company then aims to complete the commercialisation of HyREX technology by 2030.
The blast furnace facilities at the Pohang and Gwangyang plants are to be gradually converted to hydrogen reduction plants by 2050. As the two sites each have three plants, there will be a total of six plants for hydrogen–based pig iron production.
Expansion of production capacities
In July, POSCO announced its goal of carbon neutrality by 2050. POSCO aims to build a global crude steel production capacity of 52 million tonnes by 2030. For this purpose, POSCO is stepping up its efforts to establish environmentally friendly commercial production systems abroad. The company plans to double its overseas crude steel production capacity to more than 10 million tonnes in 2030 to further consolidate its position as a global steel producer.
In Indonesia, POSCO will establish an end-to-end automotive steel production line with the Krakatau POSCO Centre to secure its market leadership in Southeast Asia. Additionally, the steelmaker plans to build a low-carbon steel plant in India. Also, the company plans to increase its share of the Indian market by linking up with POSCO’s cold rolling mill in the state of Maharashtra.
