The LES issues the Deals of Distinction Award once a year to the most valuable licensing agreements in 5 sectors: Life Sciences, High Technology, Consumer Goods, Chemicals, Energy, Environment & Materials and Industry-University-Government Interface, or contracts that solved business issues in creative and innovative ways.

From left, Dong-eun Lee leader of the Energy Plant Materials Sales Group, Dr. Andrew Wasson, ExxonMobil Engineering Specialist, Se-don Choo, head of the Energy and Shipbuilding Materials Marketing Department, and Timothy Kinn, ExxonMobil Senior Commercial Advisor.

Last March, POSCO entered into a licensing agreement with ExxonMobil, the world’s largest oil company, for the production and supply of high manganese steel for slurry pipes. For the past 5 years, the two companies jointly developed POSCO’s high manganese steel for ExxonMobil’s oil sand slurry pipes and commercialized it for the first time ever.

SEE ALSO: Five High Manganese Steels for Limitless Innovations

The LES reviewed the licensing agreements of candidates and awarded POSCO and ExxonMobil the honors. The major factors taken into account were the reduction of time from materials development to market application from a standard 10 years to 5 years, and the drastic extension of steel pipe lifespan. The LES believes such improvements will reduce the overall operating costs for the oil sands industry.

Se-don Choo, head of POSCO’s Energy and Shipbuilding Materials Marketing department said, “The performance of POSCO’s high manganese steel has been recognized in various areas through collaboration with global enterprises. I hope that there will be many more cases of mutually beneficial cooperation between POSCO and its partners using high manganese steel in the future.”

Here’s a close look at the 5 types of HMS and how each can lead to innovations in its respective industry.

High Mn Steel for Slurry Pipes (PosM_XD)

POSCO’s HMS for slurry pipelines utilizes a work hardening property so it gets harder as it wears down. It is perfect for handling slurry, a mixture of sand, rock and bitumen because it has twice the abrasion resistance of traditional steel pipes. POSCO also developed a welding technology for such pipes that cuts down production costs. POSCO and ExxonMobil made headlines this year with the announcement that POSCO will produce and supply its HMS slurry pipelines to ExxonMobil’s oil sands project in Canada worth USD 22 billion. Currently, there are 1.2 kilometers of HMS slurry pipes in Canada. POSCO also produced all the accompanying welding consumables and technology.

High Mn Steel- High resistance & Wear-resistant (PosM_AR)

This is another type of HMS that is ideal for construction, heavy equipment and bulletproof gear for the military as it allows a longer lifespan and decreases structural failures. It is also cheaper in materials costs than traditional high-resistant and wear-resistant steels. The global demand for high strength steels is forecasted to rise into 2023, due to the overall increase in middle-class population, infrastructure developments and a prosperous manufacturing sector. HMS for construction and heavy equipment will become increasingly relevant as more and more engineers and construction workers opt to use these types of affordable, long-lasting and high strength steels.

Non-magnetic High Mn Steel (PosM_PM)

Non-magnetic HMS is critical for electric power equipment, electromagnetic induction devices, superconductive nuclear power generation and stealth function devices. Even though it is less costly than other similar products, it has high tensile and yield strength as well as an elongation of over 40 percent. Most importantly, it retains its non-magnetic properties even after deformation.

High Mn Cryogenic Steel (PosM_CS)

POSCO’s Cryogenic Steel retains its strength and toughness even in freezing temperatures. It also saves manufacturers materials and production costs, and thus it made up the world’s first LNG-fueled bulk carrier with a 50,000-ton capacity. POSCO teamed up with ILSHIN LOGISTICS to build the biggest LNG carrier in the world for Hyundai Mipo Dockyard. POSCO provided the HMS solution for the 500 m3 capacity Type ‘C’ LNG fuel tank, located on the aft mooring deck, as well as all of the accompanying welding technology. This project was a giant leap towards greener shipping.The material is applicable to not only LNG carriers but also LNG stations and terminals.

High Mn Automotive TWIP Steel (950/1180 TWIP)

Amid tightening regulations on the environment, fuel efficiency and safety, Automotive TWIP Steel is ideal for cars because of its high strength and high elongation percentage. With a high carbon, high manganese composition, Automotive TWIP Steel boasts increased formability and collision safety. Especially when applied to the front and back bumper of a vehicle, carmakers can obtain crashworthiness while maintaining a light weight and saving costs. This material debuted at the 2016 North American International Auto Show and was deemed a “dream steel” for cars. POSCO is the only company in the world to have successfully commercialized TWIP Steel.

The Opportunities are Limitless

The possibilities for innovation are limitless with HMS due to the enhanced properties of steel as well as the overall reductions in material and production costs. It is already an innovative material for slurry pipelines, LNG carriers and automobiles. POSCO will continue to be a solutions leader with its HMS for other industries facing limitations in materials and technology.

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POSCO joins its partners in the energy industry at the Offshore Technology Conference held in Houston in May. The exhibition booth is prepared in collaboration with the high-profile offshore tool and material manufacturers in the energy industry.

Just as it did the previous year, POSCO presented a booth together with the offshore tool and material manufacturers in the energy industry. POSCO also consulted with various companies to expand new markets for its World Premium Products, including the high manganese steel for slurry pipes, steel for LNG terminals, and steel bars for tools and materials for energy mining.

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POSCO began research & development for this technology in 2013 and invested a total of KRW 55 billion. After POSCO Technical Research Laboratories completed the initial testing, the equipment was transferred over to the Plate Rolling Department at Gwangyang Works for production.

Normally, high manganese is produced by melting solid manganese iron. When the solid manganese alloy iron is injected into a converter (a large container for storing molten iron), the temperature of the molten iron is lowered and then increased again. This leads to additional energy costs and extends the process time. In addition, with this process, refractories in the converter start to wear away as manganese oxide is generated in the process of melting.

To make this process more efficient, POSCO built PosLM (POSCO Liquid Manganese), its own special facility that is capable of storing molten manganese iron.

POSCO has already applied its own high-manganese steel in the oil sand slurry pipes for ExxonMobil, the world’s largest oil company. Also, because of its excellent durability, POSCO also plans to apply its high manganese steel to the inner parts of industrial power transformers and liquefied natural gas (LNG) tanks.

From planning to production, the successful development of the high manganese steel production technology came about as a joint collaboration between POSCO Technical Research Laboratories, steel mills, and POSCO M-tech, the company’s material development unit. This technology received the Innovation Award at the 2016 POSCO Family Technology Awards.

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POSCO CEO Ohjoon Kwon (left) shakes hands with Tom Schuessler, president of ExxonMobil Upstream Research Company, at the signing ceremony between ExxonMobil and POSCO.

ExxonMobil, the world’s largest oil company, upholds strict standards when choosing materials, and for the last five years has been working with POSCO to manufacture and test slurry pipes at worksites. Last year, a 1.2 m long slurry pipe – made with POSCO’s high manganese steel – was installed at ExxonMobil’s Kearl Oil Sands Project in Canada. It demonstrated a resistance to wear five times higher than conventional materials.

With its abrasion-resistant properties, POSCO’s high manganese steel can greatly reduce overall operating costs and increase oil production. “Seamless collaboration has led to the quick commercialization of this new high manganese steel technology, which will set a new standard for oil sands mining operations,” said Tom Schuessler, president of the ExxonMobil Upstream Research Company, who attended the ceremony.

POSCO and ExxonMobil employees pose for a commemorative photo shoot after inking a high manganese steel supply contract at the POSCO Center.

In response to president Schuessler, CEO Kwon suggested furthering their partnership by utilizing high manganese steel in various other businesses within the oil sands industry.

POSCO also plans to use its high manganese steel in the making of heavy construction and bulletproof military equipment as well as steel pipes and facilities to move various minerals including oil sand slurry.

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