POSCO Group participated in the World Climate Industry EXPO 2024 held at Busan BEXCO from Sept. 4 to 6, 2024. Let’s experience POSCO Group’s journey step by step toward a sustainable future at the World Climate Industry EXPO 2024.
Serious abnormal weather phenomena are gradually increasing in every corner of the world due to various environmental pollution, global warming, etc. To overcome the rapidly changing climate crisis, every country and major corporation is preparing carbon neutrality policies and actively responding.
Even POSCO Group has expressed its commitment to lead the era of low-carbon steel and strives to implement mid- to long-term strategies and develop technologies to reduce carbon in each business.
POSCO Group participated in the World Climate Industry EXPO 2024 at Busan BEXCO on September 4 and used the occasion to show its strong commitment and efforts to reduce carbon. World Climate Industry EXPO (WCE) is an international event hosted by the Ministry of Trade, Industry and Energy, Ministry of Environment, and International Energy Agency (IEA) to solve the global climate crisis and strengthen energy security. This year, the necessity of international cooperation to spread carbon-free energy with the theme Ushering in a Carbon-Free Energy (CFE) Era with Climate Technology was discussed at the event.
▲Visitors are looking at a model of POSCO’s hydrogen reduction ironmaking plant, HyREX.
POSCO Group showcased its carbon reduction capabilities and competitiveness in each of its businesses, including the steel business, based on POSCO’s HyREX hydrogen reduction iron and steel making technology. It operated the integrated exhibition hall for the first time this year and emphasized synergy between group businesses. The exhibition booth was on a grand scale compared to the previous year and was big enough to showcase the carbon reduction technologies and business status of six group companies, POSCO Holdings, POSCO, POSCO International, POSCO E&C, POSCO Future M, and POSCO Mobility Solution, in one place.
▲Prime Minister Duck-soo Han, who visited the POSCO Group exhibition hall, is taking a commemorative photo holding a prototype of POSCO’s hydrogen reduction ironmaking plant, HyREX. (Second from the right) Si-woo Lee, President and CEO of POSCO, Prime Minister Duck-soo Han, Nam-ho Choi, Second Vice Minister of Trade, Industry and Energy, and Hee Kim, Head of Carbon Neutrality Strategy at POSCO Holdings.
▲Prime Minister Duck-soo Han, who visited the POSCO Group exhibition hall, listens to an explanation from Hee Kim, head of carbon neutrality strategy at POSCO Holdings.
At the Expo, major government figures including Prime Minister Duck-soo Han, Second Vice Minister of Trade, Industry and Energy Nam-ho Choe, Busan Mayor Hyeong-jun Park, and Carbon Neutrality and Green Growth Committee Chairman Sang-hyeop Kim visited the POSCO Group booth and showed deep interest in the Group’s carbon reduction journey. From POSCO Group, POSCO CEO & President Si-woo Lee and POSCO Holdings’ carbon neutrality team leader Seong-rae Cheon attended and introduced POSCO Group’s carbon reduction synergy to major government figures.
On the second day of the Expo, Prime Minister Han, who visited the POSCO Group exhibition hall, had a long conversation with POSCO CEO Lee about technology while carefully examining the HyREX model of Korean hydrogen reduction iron and steel making. Prime Minister Han emphasized the importance of developing hydrogen reduction iron and steel making technology as a national strategic technology, and asked for the support of the Ministry of Trade, Industry, and Energy so that nuclear power plants can be used from the perspective of carbon-free energy (CFE) in relation to the supply and demand of a massive amount of clean hydrogen to reduce carbon in steelworks.
Now, let’s take a closer look at POSCO Group’s exhibition hall. First, multiple screens installed on the top of the booth captured visitors’ attention. The carbon reduction synergy of POSCO Group’s front and back industries, including clean hydrogen production, low carbon energy growth, and material business for future mobility centered on HyREX, the main theme, was displayed as a media facade that made visitors stop and look.
In the main exhibition zone of the booth, contents were installed that visually embodied the features of POSCO’s hydrogen reduction iron and steel making technology HyREX process, the core of the low carbon steel making industry. Four fluidized bed reactors and electric furnaces, and plans to procure a large amount of hydrogen through a nuclear power plant, were built as a model to help visitors understand the technology.
POSCO’s HyREX technology is an innovative steel production technology to reduce the generation of carbon by using hydrogen instead of coal. It is a method of manufacturing molten iron by melting direct reduced iron made by using iron ore in powder form and clean hydrogen in electric furnaces based on POSCO FINEX fluidized bed reactor technology. Because POSCO’s HyREX technology can use iron ore in powder form, it has the advantage of being able to economically produce molten iron without the limitation of raw materials compared to the hydrogen reduction iron and steel making technology of competitors. POSCO also plans to replace the electric power used in the HyREX process with carbon-free energy.
Why don’t we take a closer look at the efforts POSCO Group is currently making to ultimately transition to future hydrogen reduction iron and steel making? First of all, we cannot ignore POSCO’s carbon reduction bridge technology. “Bridge technology” refers to process technology to produce carbon-reduced steel products using existing facilities. Before HyREX technology is commercialized, POSCO is making efforts to gradually reduce carbon emissions in the current blast furnace production method. In particular, the group is planning to introduce a blast furnace process based on carbon-reduced fuel and raw materials, as well as converters and electric furnaces, in the ironmaking and steel making processes from which a large amount of carbon dioxide is emitted.
The role of hydrogen is very important in the hydrogen reduction iron and steel making process that reduces carbon dioxide emissions by using hydrogen. POSCO Holdings’ New Experience of Technology Hub is in the process of developing “high-temperature water electrolysis” technology that produces hydrogen by electrolysis of steam at high temperatures above 700℃. It is anticipated that clean hydrogen, which is essential for transitioning to HyREX in connection with next-generation nuclear power plants such as active nuclear power plants and small modular reactors (SMRs), will be economically produced in Korea. POSCO Holdings currently has 5 kw stack production technology, and is preparing mass production technology by modularizing this technology. If this is completed, it is expected that large amounts of hydrogen will be stably supplied to the hydrogen reduction iron and steel making process.
Carbon capture, utilization and storage (CCUS) technology is attracting attention as the key in transitioning to low carbon in the industry. POSCO Holdings is carrying out a national research and development project in cooperation with the public and private sectors to develop CCUS technology, which captures and stores carbon dioxide generated during the steelmaking process. In addition, it is in the process of commercializing technology that produces liquid carbon dioxide from captured carbon dioxide, and stores carbon dioxide on land using mineral carbonation.
POSCO International is promoting a low carbon energy project in the area of carbon capture and storage (CCS) and clean hydrogen. It is moving forward with various global partnerships to secure domestic and overseas subsurface storage and establish a CCS value chain with its E&P capabilities accumulated through the development of gas fields in Myanmar.
POSCO International intends to prepare infrastructure to supply clean hydrogen to major bases in Korea and contribute to reducing carbon by linking it with local energy systems. It plans to operate a low-carbon energy complex terminal near the Gwangyang LNG terminal currently in operation. Furthermore, it is expected to achieve carbon reduction by replacing units No. 3 and 4 in the Incheon LNG complex power plant with highly efficient generators and with clean hydrogen co-firing power generation.
The secondary cell material industry is a great driving force behind the future low carbon era. POSCO Group has completed a value chain that is the only one in the world that can supply everything from Secondary battery materials to final materials including anode and cathode materials, centered on POSCO Future M. It aims to leap into the top tier in the global battery market by securing business competitiveness with next-generation R&D.
POSCO Mobility Solution uses POSCO’s steel materials to produce drive motor cores, a key component of eco-friendly vehicles and hybrid vehicles. POSCO Mobility Solution’s drive motor core is recognized for its technology and durability to the extent that it is applied to more than 90% of the domestic eco-friendly vehicle market. The company plans to expand the supply of parts to global car makers in the future!
POSCO E&C is practicing carbon reduction from the perspective of life cycle assessment (LCA). The company plans to lead sustainable construction in the future by applying low-carbon technology to the entire construction process from production to operation and disposal by using carbon reduction materials and applying eco-friendly energy technologies.
Q It seems that exhibition contents have grown richer this year because POSCO Group companies participated together. Please tell us about your background and impressions in participating in the World Climate Industry EXPO 2024.
POSCO Holdings established a new carbon neutrality team this year, set up a strategy for promoting carbon reduction at the Group level, and is checking and adjusting issues arising during the implementation of its roadmap. The company introduced not only hydrogen reduction iron and steel making in this year’s exhibition but also various carbon reduction activities in the front and back industries of steel making at a Group level and emphasized the synergy between these industries. Through this exhibition, a general consensus was formed that carbon reduction is not a single company’s problem but a shared global goal that the entire industry should address together with shared commitment, participation, and policy foundation.
Q In this year’s exhibition, we could see the synergy of carbon reduction projects at the Group level based on steel. What are the carbon reduction capabilities and vision POSCO Group intended to emphasize in this exhibition?
The reduction of carbon in steel, the essential material of the manufacturing industry, can be said to be the beginning of the realization of carbon neutrality in Korea. HyREX, POSCO’s unique hydrogen reduction iron and steel making method, is a technology for reducing iron ore using hydrogen instead of coal. This creates direct reduced iron by using POSCO’s unique fluidized bed reactor (FINEX) and making molten iron by melting the iron in an electric smelting furnace (ESF). Since HyREX can use powdered iron ore as it is compared to the shaft hydrogen reduction iron and steel making technology of competitors that must process premium raw materials for use, it is receiving a lot of attention as one of the key low carbon steel technologies, and 17 companies have entered into partnerships with our company so far.
In this year’s exhibition, a model that easily explained HyREX technology received a good response from many visitors. The prime minister personally visited POSCO Group exhibition hall and stressed the importance of developing Korean hydrogen reduction iron and steel making technology. He also emphasized the government’s support and cooperation for domestic carbon-free energy electric power and clean hydrogen infrastructure in connection with hydrogen reduction iron and steel making technology.
In addition, the exhibition showcased the carbon reduction technologies and capabilities of each group company including POSCO Holdings (N.EX.T Hub), POSCO International, POSCO E&C, POSCO Future M, and POSCO Mobility Solution in addition to POSCO. We hope the capabilities at the POSCO Group level, such as domestic and overseas carbon capture, utilization, and storage technology (CCUS), high-temperature electrolysis in connection with nuclear power plants, low carbon energy infrastructure/development project, and Secondary battery material projects create synergy to take a step forward in the era of carbon reduction.
Q It seems that the development of hydrogen reduction iron and steel making technology will gain momentum since it was designated as a national strategic technology earlier this year. What is the current status of the development of HyREX technology?
Earlier this year, POSCO established the HyREX Promotion Team as an organization dedicated to HyREX technology development and engineering, and opened the Hydrogen Reduced Steel Development Center to spur the development of the technology. In addition, we have succeeded in producing the first molten iron by activating a pilot electric melting furnace with a capacity of 1 ton per hour in April, and are planning to conduct melting tests for direct reduced iron and HBI with trial operations in the future.
The Korean government recognized the importance of hydrogen reduction iron and steel making and designated it as a national strategic technology earlier this year. POSCO is preparing the HyREX demo plant demonstration in connection with the national task for developing Korean hydrogen reduction iron and steel making technology promoted by the Ministry of Trade, Industry and Energy, and is planning to lead the low carbon steel market by completing the development of the commercialized technology by 2030.
Q The theme of this year’s exhibition was “Ushering in a Carbon-Free Energy (CFE) Era with Climate Technology.” Please explain POSCO Group’s direction and goal to secure competitiveness in decarbonization.
The most important element of carbon reduction in steel, along with hydrogen reduction iron and steel making technology, is the economic and stable supply of a massive amount of clean hydrogen and carbon-free energy. To this end, we expect that the fastest and most economical way is to expand renewable energy as well as widen the scope to carbon-free energy (CFE) linked to nuclear power plants.
Carbon neutrality is already working as a kind of trade barrier to preempt global new economic dominance, and major developed countries such as the EU, the United States, and Japan are boldly promoting various policies and financial support at the government level to strengthen their industrial competitiveness.
The Korean government has also started pushing ahead with carbon neutrality at the government level by declaring a carbon-free energy initiative. If the government’s actual system and infrastructure such as the early implementation of zero-carbon energy use is added to this initiative, we look forward to POSCO Group playing a greater role and significantly contributing to not only the completion of HyREX Korean hydrogen reduction iron and steel making technology, but also the realization of national carbon neutrality.
▲(Left) Si-woo Lee, CEO and President of POSCO, is looking at the POSCO Group’s integrated exhibition hall. (Right) A prototype of POSCO’s Korean-style hydrogen reduction ironmaking process, HyREX.
POSCO opened the Hydrogen Reduced Steel Development Center at Pohang Works in January and is continuing to conduct R&D with the aim of completing the commercialized technology for hydrogen reduction iron and steel making by 2030. Recently, hydrogen reduction iron and steel making technology was selected as a national strategic technology in recognition of its strategic importance in the steel industry and impact on the national economy. Accordingly, the development of POSCO-style HyREX, which will be the key to realizing carbon neutrality, is expected to be accelerated.
POSCO Group will cooperate throughout the business and plans to realize its carbon reduction target based on superior technologies and continuous R&D. Please look forward to the sustainable future POSCO Group will show you!