Mass-balance type low-carbon “Greenate certified steel” launched on June 1
Certified reduction of carbon emissions by 590,000 tons allocated to products for sale
LG Electronics to be supplied 200 tons of steel… Mid- to long-term carbon neutral collaboration with Samsung Electronics
On June 1, POSCO organized an event at the POSCO Center in Gangnam and invited key domestic clients to “a briefing session on its plan to launch a low-carbon product.” During the session, POSCO provided insights into the current global demand for carbon reduction and presented its 2050 carbon neutral roadmap. The company also unveiled a lineup of low-carbon products set to be released by 2030.
One of the notable products introduced by POSCO is “Greenate certified steel,” which operates on a mass-balance principle. This product effectively reduces carbon emissions by distributing the emissions saved through the implementation of low-carbon production processes and the use of low-carbon steel. Companies that purchase this product are acknowledged for their efforts in reducing carbon emissions equivalent to the amount associated with the product.
At the Green Materials Forum 2022 on November 1 last year, POSCO Group launched Greenate, a master brand representing the company’s ambitious mission to achieve carbon neutrality by 2050, after which the product is named. Greenate encompasses all the efforts and products of POSCO Group to produce low-carbon steel and eco-friendly secondary battery materials, as well as the three major eco-friendly steel brands e Autopos, INNOVILT, and Greenable.
Leading steel manufacturers in Europe and Japan had already adopted the mass balance methodology, which involves allocating carbon reductions to specific steel products, in 2021. POSCO became the first company in Korea to adopt this method for launching a low-emission product.
The evaluation of carbon emission reduction for Greenate was conducted according to the GHG Protocol, a widely used international standard that measures greenhouse gas emissions. The assessment was performed by DNV (Det Norske Veritas) UK, one of the top three certification agencies globally, with extensive experience in certifying carbon-reduced steel from steel companies worldwide. The evaluation took place at POSCO’s Pohang Works and Gwangyang Works.
Companies that purchase Greenate certified steel receive DNV’s product guarantee, with includes information on carbon reduction information on the raw material, along with POSCO’s purchase certificate.
LG Electronics is the first client to purchase the newly released Greenate certified steel. Last November, POSCO and LG Electronics signed a business agreement for the supply and purchase of mass-balance type low-carbon steel products. Immediately after the product launch, LG Electronics placed an order for 200 tons of the new steel, which will be used as materials for their dryers. The company intends to actively explore opportunities for expanding the use of low-carbon steel in household appliances in the future.
In addition, Samsung Electronics is currently considering the procurement of Greenate certified steel for their premium ovens. Recently, POSCO and Samsung Electronics entered into a three-year supply contract for high-strength, high-corrosion, and electric steel plate products for home appliances. This marks the first long-term agreement between the two companies, underscoring their shared dedication to technological collaboration and carbon neutrality.
“The low emission trend is inevitable in the steel industry, and POSCO is responding proactively by launching new products,” Gi-cheon Eom, Head of Marketing Strategy Office, said at the briefing session. “With the launch of Greenate certified steel, the company has taken a step forward in its long journey towards carbon neutrality.”