The “Green New Deal” is what’s getting Greenie’s attention these days. The Green New Deal is about promoting sustainable development and converting energy policies centered on fossil fuel to new and renewable energy. This is something that Greenie, the protector of the environment, can’t overlook, right?

Among the many acts of the Green New Deal, wind power is in the limelight not only in Korea but also worldwide. Greenie remembers seeing from an airplane giant wind turbines standing by the beach. Today, we are going to learn about offshore wind power and POSCO’s solution behind it.

l Offshore Wind Power: The Trend For Now & The Future

Let’s see. According to the Global Wind Energy Council report, the global wind power market has grown significantly at an annual average of 24% since 2013. New installations in 2019 recorded 60.4GW. How is it going to be in the future, then? In 2024, annual installation is forecasted to be 73.4GW, and the noticeable part is that the percentage of offshore wind power is expected to increase significantly by more than 25%. Offshore has more constant and stronger winds than inland, and there are no issues regarding sunlight and noise. Hence, the popularity of offshore wind power is on the rise.

If wind power capacity expands as forecasted, we might anticipate a more sustainable energy consumption than coal-fired power or LNG. Now, wind turbines should be installed in places that have rough and strong winds. But wouldn’t the strong winds cause problems with the safety and durability of the structure? Also, how do offshore wind power turbines withstand seawater? Since wind turbines will certainly apply steel, I’ll have to ask Steely about it!

l The Irreplaceable Material For Wind Power Structure, “Steel”

Steely, these days, the number of offshore wind power projects has increased tremendously. Is it safe to have such a huge structure standing in the sea like that?

Don’t worry, Greenie. POSCO has been working with wind turbine manufacturers for a long time to make safe wind power structures. As you said, wind power structures are really large and are always exposed to harsh natural environments. Also, the turbine installed on top has to keep rotating for a very long time, so there are high risks of damage or defects. That is why POSCO is equipped with various steel products for wind power structures, including the following: 1) Hyper NO: non-grain oriented electrical steel that increases energy efficiency by reducing power loss of the motor within the turbine, 2) POSCO Windpower (PosWIND): highly durable wire rods that can minimize the friction of the turbine bearing, and 3) Steel for Wind Power: steel plate that helps the tower and foundation to withstand the harsh environment. With the development of the wind power industry, Many companies specializing in wind power towers and foundations have been established. And all of these companies utilize only steel pipes. It shows that steel is an indispensable material for offshore wind power structures, and material research continues to make safe wind power structures.

▲ A wind power structure consists of a “tower” that provides support, a “blade” that rotates against the wind, a “generator” that isn’t visible on the outside, and a “foundation” that securely fixes the tower to the seabed.

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How come steel is used as the main material for wind power structures?

It is because of the outstanding yield strength and fatigue strength of steel. The term seems complex, but the concept is simple. In general, wind power structures are designed to have a lifespan of 20 to 25 years, but they are constantly exposed to wind and waves of various directions and strength during this period. Yield strength depicts the force that a material can withstand without being deformed when subjected to an external force. If the yield strength is 355 MPa, it means that the material, when pressed with 355 MPa, can endure without any bending or deformation. However, other than 355 MPa being applied at once, it is rather the small forces repeatedly applied that can eventually destroy the material. And the strength to endure this is named fatigue strength. If the fatigue strength is 90MPa, it means that the material can withstand 2 million times of 90MPa, which is the change in stress (the difference between the maximum and minimum record). Steel plates with a yield strength of 355 MPa and a fatigue strength of 90 MPa are usually applied to the foundation of wind power structures. The steel plates used here are called “steel for wind power”.

So, you mean to say that steel for wind power is thick steel that does not easily break or bend even under repeated stress, right?

You’re right. For the foundation of wind power structures, which receives the most amount of weight, the material mainly applied is the steel for wind power with a thickness of 70 to 100 mm and the strength mentioned above. It’s really thick, isn’t it? Since the material should have various strengths, be corrosion resistant to withstand seawater, and be thick, it is difficult to produce and poses a high-cost burden to client companies. So what must be done? This is where POSCO’s solution steps in. POSCO provides applied technology securing the quality that clients desire while increasing cost competitiveness and creating optimal designs! Especially POSCO is working hard to increase the size of the material, which is the trend of the wind power structure market.

l The World’s Largest Offshore Wind Farm Grows Even Bigger with POSCO’s Solution!

– Hornsea, the world’s largest offshore wind farm with 339 large monopile wind turbines

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Increasing size is a trend? So how does increasing size have to do with wind power structures?

By enlarging the turbine and raising the tower higher, it becomes possible to obtain excellent wind quality and increase power efficiency. The wind power structure at Vindeby, the world’s first offshore wind farm installed in Denmark in 1991, was 54m high and had a wind power capacity of merely 0.45MW. However, recently, power structures with a height of over 190m and a power capacity of 8MW are being installed offshore. Naturally, the towers and foundations will also become bigger, right? The towers, which were formerly 5m in diameter, have been expanded to more than 6m. While the foundations, which were mainly 7m in diameter in the past, have grown to be more than 8m these days.

I’ve seen the tower above sea level, but what does the foundation of the wind power infrastructure on the seabed look like?

There are several types of foundations, and they can be largely divided into fixed and floating structures. The most popular one among them so far is the fixed structure “monopile,” which is widely adopted by global energy companies being the most cost-efficient type. The foundation of the monopile protects the tower from extreme environments, including repeated vibrations under the sea, collisions with other floating objects, and rough waves.

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Is steel the main material for this monopile as well?

Yes. The most representative example built with this monopile type is the Hornsea offshore wind farm in England. Hornsea is the world’s largest offshore wind farm with a total of 339 wind power structures — 174 in Project 1 and 165 in Project 2 — with a total power capacity of 2.6GW. The conventional turbine capacity per structure ranged from 5 to 6 MW, but as it was increased to 7MW in Project 1 and to 8MW in Project 2, the structure became larger as well. So as of present, the monopile also reaches 8m in diameter. And POSCO’s solution has enabled the significant expansion of the Hornsea wind farm.

– “LCOE,” the hot keyword of the energy industry

Ørsted, the global energy company operating this power plant, advanced to increase the turbine size and enhance operational efficiency. This is because high power efficiency in the long run ultimately leads to cost savings for operators. Including such cost reduction, reducing “Levelized Cost of Energy (LCOE)” is a hot keyword in the energy industry. LCOE refers to the overall estimated power production cost that includes initial investment cost, fuel cost, maintenance cost, and social costs, such as costs for environmental pollution and safety. Most of the wind farms built these days are designed to reduce LCOE. And in order to reduce LCOE, increasing the size of the power structure becomes essential.

OK. So if the power structure becomes bigger, the steel applied must be strengthened accordingly, right?

Well. You might think that it would only be sensible to use stronger steel for the towers and foundation since the structure has become bigger. But here comes the twist. Ironically, orders for steels with weaker strength began to rush in.

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Huh? The tower is getting bigger, but orders are for material with weaker strength?

Think about it. For the foundation to withstand a specific load, all three factors — diameter, thickness, and strength — of the structure should be balanced. So, since the diameter and precision increase, the strength may rather weaken instead.

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You’re right! The strength can be lowered because the size has increased.

Let’s suppose you were making a pillar with a diameter of 1cm with very strong material, but you decided to expand the diameter to 2cm. Since the structural performance becomes stronger, even if the strength of the material is lowered, it can still sufficiently withstand the necessary load. Besides, the change in material means that it is going to be more economical. With this reasoning and taking LCOE into account, energy companies tried to make larger foundations from steel that were a little weaker and cheaper than conventional ones. Originally, the most used steel for wind power had a yield strength of 355MPa, but now steel with 275MPa yield strength could be used as well. However, POSCO had never received an order for steel with a yield strength of 275MPa. So what do you think happened?

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Well. POSCO wouldn’t have said, “Oh sorry, we’ve never made them before.”

It takes at least 6 months to mass-produce a new steel product, but the client wanted to receive the 275MPa grade steel for wind power as soon as possible. So POSCO came up with an idea to produce 355MPa grade steel for wind power and 275MPa grade steel for wind power at the same time! The idea was this: manufacturing a product in the same way as the 355MPa grade steel up to the slab process, then setting the rolling conditions differently to produce grade steel for wind power with a yield strength of S275MPa, and lastly supplying it immediately to the client.

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Ah, it’s like making dumplings all at once and then deciding whether to fry them or steam them!!

That’s right. And there is one more POSCO solution in action here. Ørsted required Ultra-large and thick steel (steel plate weighing more than 24 tons per sheet) so as to reduce welding of the wind power structure foundations. However, Ultra-large and thick steel are quite expensive since they can only be made in some places. So, instead of supplying Ultra-large and thick steel right away, POSCO proposed Ørsted a design where conventional steel plates are applied but with the same strength as a monopile made with Ultra-large and thick steel. The cost, of course, was much cheaper!

▲ The foundation of a wind power tower (monopile type). The outer diameter of the large tower reaches 12m maximum. (Image source: EEW Group)

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It must have been a competitive monopile design LCOE-wise!

Also, the applied technology for POSCO steel stood out. In order to ensure optimal usage of steel used in both the foundation and the tower, POSCO conducted structural analysis and mock-up tests together with the client for months and established appropriate welding technology. That’s how POSCO steel was put to use in the foundations and towers used for large wind power structures in the Hornsea 1 wind farm.

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There is a reason why the world’s largest energy company chose POSCO.

Ørsted, on experiencing POSCO’s solutions firsthand, entrusted POSCO with steel supplies for the second project. As a result, about 170,000 tons of POSCO steel were used to manufacture wind power structures in the Hornsea project. You can say that POSCO’s solution is hidden behind the world’s largest offshore wind farm.

l Wind Power Growing Bigger With Steel: How Sustainable Is It?

With the scale of the offshore wind power projects currently under progress and the various data forecasts, many companies will likely jump into the offshore wind power field in the future. Since steel has no alternative material for wind power towers and substructures, technical cooperation between the offshore wind power industry and the steel industry is inevitable. I think POSCO has a role to play here. So how much will these gigantic wind power structures help our planet in reality?

Let’s take the case of the Hornsea 1 project, where POSCO steel is applied. A single wind turbine can supply 24.5GWh of clean power annually, which can reduce 11,400 tons of carbon dioxide emissions when compared to the conventional power we currently use — fossil fuel-generated power. Since a wind turbine can be operated for about 20 years, it can produce about 490GWh during its lifetime and reduce approximately 230,000 tons of carbon dioxide. It has the same effect in reducing greenhouse gas as planting 3.46 million trees.

Now that I’ve heard all about it, I hope that wind power will soon become Korea’s no.1 energy source.

According to the trend of building large wind turbines, POSCO is considering facility investment for supplying Ultra-large and thick steel and other solutions to reduce LCOE. As the global wind power market is expanding rapidly, POSCO is also trying to keep pace and provide Sustainable solutions strategically.

Another man Mr. Byungwook Kim (25 years old at the time) was hit by careless driver in the road in 1998. As a consequence, his dream playing tennis in a national team simply disappeared.

Byungwook Kim, wear Work-on-suit in Cybathlon 2016 (Source: Professor Kong)

However, the miracle had happened to both of them due to the support of new advanced robotic technology called ‘wearable robot’. Now Mr. Kim is able to climb the stairs or even step the stones. Moreover, he won bronze Cybathlon 2016, the first Cyborg Olympic that competes robotic technologies for people with disabilities and Mr. Lee became the first person to deliver the torch in Pyeongchang Paralympic in 2018.

Wearable robots can be used in diverse sections such as protection in harsh condition (Source: Engineers Ireland)

Where we can find them?

In fact, wearable robot is already introduced in various fields. Wearable robot is applied not only for people with disabilities (paralysis of the whole body or partially) but also protection for employees from harsh conditions or life support purpose for the elders. For instance, the Korean steel manufacturing company, POSCO has applied wearable robot to manage the refractory in furnace which gave the advantage of increasing productivity by 12.6 billion won (worth as approximately 12.9 million US dollars). (Source: “Current level of Korean wearable technology?” (2016). Donga Ilbo).

The technology has brought a great improvement in terms of efficiency, enabling to save 54 days to finish the process consequently saving 12.1 billion won (worth 121 million US dollars) and the less human resources are requited that worth saving 8 hundred million won (worth 100 thousand US dollars). Furthermore, wearable robot is introduced into diverse fields such as supporting fireman or VR (virtual gaming).

SEE ALSO: Will Artificial Intelligence Lead to Breakthroughs in the Steel Industry?

Scene from ‘Iron man 3’. Wearable robot may come sooner than you anticipate (Source: theHollywoodreporter)

Is it realistic?

You can imagine the world famous move ‘Iron man (2008)’. In the movie, when Tony Stark (main character in the movie) simply calls the Iron man suit, it comes to his body automatically. As the series goes on, the technology of the suit also dramatically developed. Recently, news from the movie ‘Avengers: Infinity War’ stimulate the curiosity of new advanced technology of the Iron man suit.

Wearable robots may promise better quality of life (Source: ZDNet)

What makes that wearable robot get close to our real life rapidly? Significant improvement of wearable robot compartment such as electric motors, battery, processors can be the reason. But most of all, innovative development of material is the key factor.

Light weight, flexibility and endurance are the fundamental elements

Why materials?

Since the wearable robot is designed to fit in human body, the light weight of the structure is fundamental. Recommended materials for designing wearable robot need to be reinforced plastic or even lighter and have more flexibility.

High impact is another factor that wearable robot need to endure. The physical force of walking is the same amount of force that can bend 5mm X 10mm thickness of aluminum stick. Therefore, structure of the wearable robot should have adequate strength to protect the people who wear them. This is the reason why most of the wearable robots are made of alloy materials.

Therefore, the fundamental element for the success of wearable robot will be application of light and high impact materials into wearable robot’s structure. One of the good examples is “GIGA Steel” that has been recently invented by POSCO providing significant impression to robotic scientists by showing advanced quality on both hard impact and workability. GIGA steel is also recommendable for custom manufacture.

SEE ALSO: Auto Industry Finds Steel Solution for Lightweighting

Advanced robotic technology can lead elevation of quality of human life (Source: SG Robotics)

Pack of robots working in the factory is not just all about 4th industrial revolution. Wearable robot may play in a crucial role in improving human quality of life. With wearable robot’s help, walking disability might be considered as little discomfort in near future. Korea is one of the leading countries in wearable robotic fields and POSCO’s advanced technology may influence huge impact on the wearable robotic fields.

The U.S. is headed towards a major shortage of truck drivers. (Source: The New York Times)

However, the U.S. is short of about 30,000 to 35,000 drivers for every 750,000 trucks, and the number of driver shortages may reach up to 245,000 by 2022. That’s because right now, the average age of truck drivers in the U.S. is 55, and potential new recruits are choosing to sign up for construction or manufacturing jobs instead.

All this leads to climbing prices for freight transportation. Last December, at the peak of holiday deliveries, U.S. companies saw the highest monthly average rate for freight transportation since 2010. The high operation costs and lower profit margins are putting a heavy strain on industries. Heading into 2018, companies have to compete for carriers as there is just one truck available for every 12 loads.

As a result, Major automakers are heavily invested in autonomous electric freight trucks such as Tesla, Volvo and Daimler, and there are many proponents of an eco-friendly, safe and driverless future for freight transportation. However, autonomous freight trucks are not a realistic option for companies just yet. At a time of transition between the old and the new, there is a serious lack of capacity in freight transportation, and companies are left to deal with the higher costs for delivery.  

But good news right around the corner

Although the driver shortage is a major concern, it is a natural phenomenon in the transition towards a safer, more sustainable and more efficient freight transportation industry.

Uber’s autonomous freight trucks are in operation with a human safety driver on the highways of Arizona. (Source: Future Car)

Already, Uber has its autonomous trucks on the highways of Arizona. Every truck does have a human driver present to take over anytime, and the company uses transfer hubs to transfer goods between highways and local roads. Autonomous trucks are the safest and most efficient for use on highways, so human drivers transport goods from highways to the final destination. The company is working to operate without human backup drivers in the near future.

Waymo’s autonomous freight trucks have gone through almost a decade of testing and is now delivering supplies for Google in Atlanta. (Source: Wired)

Waymo is another company with autonomous trucks already in operation. Just this month, the company’s autonomous freight trucks started transferring equipment for Google data centers in Atlanta.

Embark was the first company to complete a successful coast to coast run with an autonomous truck. (Source: Micro Power Grids)

Embark also has its autonomous trucks in operation. Earlier this year, the company made a successful 2,400-mile trip from California to Florida with a human safety driver on board. The company has plans to commercialize its services in the coming years.

SEE ALSO: 6 Cities On the Road to a Driverless Future

Speeding up delivery

Numerous other automotive and tech companies besides those mentioned above are getting ready for autonomous freight transportation. The faster autonomous freight trucks are able to operate commercially, the faster industries can cut costs, improve delivery times and reduce their carbon footprint.

This means software technology, high-capacity batteries as well as the right automotive materials will play a crucial role in the future of the freight transportation industry, as well as in related industries. This transformation will open up new business opportunities for automakers, software companies as well as steel manufacturers like POSCO.

For autonomous truck manufacturers looking for ultra-lightweight yet super strong materials for optimal fuel efficiency, POSCO developed POSCO GIGA STEEL. The advanced high-strength steel (AHSS) material is 3 times stronger and 3.5 times cheaper than aluminum. Steel is also 100 percent recyclable and an electric vehicle made of AHSS requires 30 percent less energy than aluminum throughout its entire lifecycle. POSCO also developed a premium non-oriented electrical steel called Hyper NO for the most advanced and sustainable electric motors.

SEE ALSO: Why Electrical Steel Can Make All The Difference In EV Motors

POSCO also works with its auto partners to research and provide customized technology and materials solutions for their autonomous EVs. In the midst of a critical shortage of truck drivers, POSCO hopes to speed up autonomous EV adoption both for personal and commercial transportation and aid the transition into a more efficient and environmentally sustainable economy.

Cover photo courtesy of Time.

Scientists predict 2018 may be a tumultuous year for earthquakes. (Source: Take Two)

As structural damage is the leading cause of injury and deaths during an earthquake, architects, engineers and builders need to make sure buildings are built with the right materials and design.  

SEE ALSO: What it Takes to Build a Natural-Disaster-Proof House

The Materials

The most dangerous type of earthquakes are ones that trigger horizontal movements, because tall buildings are better at resisting vertical loads than horizontal ones. These ground motions can damage building foundations in a matter of minutes, causing severe injuries and deaths. Building a structure to withstand seismic waves starts with the right materials with the right properties, and steel is by far the most widely used material for building earthquake-resistant buildings.

According to the World Steel Association, ductile buildings are safer as they dissipate energy from seismic waves. A building will typically have ductile parts that can undergo plastic deformations without complete structural failure during an earthquake. Steel is the most common type of material for such parts.

Moreover, due to the law of inertia, the lighter the building, the less force seismic waves will exert on the building. That’s why it’s important, especially for taller buildings, to be made of light and flexible materials such as steel that can “bend” with the movement of earthquakes. On average, multi-story steel buildings are 60 to 70 percent lighter and 10 times stronger than concrete-framed buildings of the same size.

The Design

With steel, builders can add vital designs and reinforcements to keep the structure standing through an earthquake. Here’s some of the most widely-used measures.

Cross braces transfer the force of an earthquake to the ground. (Source: Earthquakes in India)

The structural integrity of buildings can be reinforced with steel cross braces that frame the exterior of a building in an x-shape. Ultimately cross braces can transfer the force of seismic waves back down to the ground, instead of letting the building take the hit. Builders can also reinforce the walls of buildings with additional vertical walls, or shear walls, that add stiffness to the frame of the building, allowing it to resist swaying or horizontal movements.

Base isolators absorb much of the shock of seismic waves. (Source: Embelton)

Base isolation involves separating the building from the foundation so that the isolators to absorb shock from the earthquake. The isolators allow the building to move at a slower pace because they dissolve a large part of the shock. Moment-resisting frames also effectively dissipate energy from floors and roofs to the building’s foundation and the stiff yet flexible frames can change shape during an earthquake. Although more costly, moment-resisting frames enable buildings to withstand an earthquake with excessive horizontal movement.

Putting it into practice with POSCO’s Steel House

In September 2017, Young Bae Kim’s home in Gyeongju province, Korea was hit with a 5.8 magnitude earthquake, just 8.9 km from where the earthquake started. Surprisingly, Kim’s home was unscathed. “I could feel the ground shake, but the house was completely under control.” Kim expressed.

Kim lives in one of the Steel Houses built by POSCO employees who volunteer to build homes and bridges for communities in need. Each Steel House is made with POSCO’s lightweight structural steel known for its durability, fire resistance and vibration resistance. The homes also incorporate PosMAC, a specialized galvanized steel that is 5 to 10 times more corrosion-resistant than standard steel and is more durable and affordable.

POSCO Employees volunteer their time to build steel houses in rural communities.

Because all the Steel Houses survived the Gyeongju earthquake while other homes were damaged, more and more people in Korea are choosing steel for their homes over traditional building materials such as wood and concrete. The same trend can be observed in Japan, where earthquakes are much more frequent. In order to build more earthquake-resistant buildings, steel is still the best solution available.

Cover photo courtesy of CNN.

However, these building projects are on another level of huge, and with all the megacities popping up throughout the country, China boasts many of the biggest infrastructure projects in the world. Here’s the Steel Wire’s look at some of the most impressive to date.

Three Gorges Dam

China is home to the largest dam in the world, measuring 1.5 miles in length and sitting 60 (!) stories tall. The Three Gorges Dam took 1.92 million tons of rolled steel to complete, along with 10.82 million tons of cement and 1.6 million cubic meters of timber. The dam opened in 2003 on the Yangtze River and last year, generated a record-high 97.8 billion kilowatt-hours of electricity, 4.35 percent higher than the previous year.

The Three Gorges Dam is the biggest dam in the world and is made up of 1.92 million tons of steel. (Source: Wikipedia)

Beijing Capital International Airport

Beijing Capital International Airport (PEK) was the second largest and busiest airport in the world in 2016, just behind the Hartsfield–Jackson Atlanta International Airport in the U.S. PEK recorded 94,393,454 passengers that flew in and out in 2016, a 5 percent increase from 2015, and is easily the biggest airport in all of Asia.

Beijing Capital International Airport is the biggest airport in Asia, and second in the world. (Source: Top China Travel)

The first phase of the airport cost USD 3.5 billion and was completed in 2008, but in order to handle the growing number of passengers, an expansion project is planned for 2025. The estimated 5-year project will almost double PEK’s capacity and cost an additional USD 13 billion.   

Jiaozhou Bay Bridge

China is also home to the longest sea-crossing bridge in the world. The massive structure stretches over 26.4 miles and connects the cities of Qingdao and Huangdao. The 110ft width accommodates 6 traffic lanes that are supported by 5200 steel pillars.

The Jiaozhou Bay Bridge is held up by 5200 steel pillars. (Source: Feel the Planet)

The bridge first opened in 2011 and took USD 2.3 billion and over 10,000 workers to build. The Jiaozhou Bay Bridge also took 450,000 tons of steel to complete, allowing the bridge to be able to withstand earthquakes up to 8.0 in magnitude, typhoons and the force from a 300,000-ton object.  

Jiuquan Wind Power Base

Not surprisingly, the largest wind farm in the world located in China. Jiuquan Wind Power Base is made up of 7,000 turbines that generate enough electricity to sustain a small country. The plant was approved in 2008, and the government has pledged an additional USD 17.4 billion by 2020 as part of the effort to develop China’s renewable energy industry. For now, only 3.3 percent of all the electricity generated in China comes from wind turbines. With the additional investment, Jiuquan Wind Power Base will be able to generate a massive 20 gigawatts of sustainable electricity.

The Jiuquan Wind Power Base generates enough energy to power a small nation. (Source: The New York Times)

New Century Global Center

What does the biggest building in the world look like? A mini country. Located in Chengdu, Sichuan province, the New Century Global Center combines a shopping mall, water park, hotels, movie theaters, offices, restaurants, ice rink and more into 19 million sq.ft. of space. The structure is made of glass and steel and measures 500 meters long, 400 meters wide and 100 meters high. Designed by architect Zaha Hadid, it even has artificial sun for the perfect weather, 24 hours a day.

The New Century Global Center located in Chengdu is the largest city in the world. (Source: Thousand Wonders)

Port of Shanghai

The world’s biggest ports are mostly located in China, and the biggest one is the Port of Shanghai. In 2012, 744 million tonnes of cargo and 32.5 million twenty-foot equivalent units (TEUs) of steel containers passed through the port. The entire area of the port on the Yangtze River covers 3,619km² comprised of 3 main ports: Wusongkou, Waigaoqiao and Yangshan Deep-Water Port. About 25 percent of China’s trade passes through the Port of Shanghai, or 2,000 steel container ships per month.

The Port of Shanghai is the largest port in the world and a quarter of China’s trade passes through it. (Source: Thomson Reuters)

Most recently, the 4th phase of the Yangshan Deep-Water Port was completed, making it the largest automated port in the world. It spans across 2.23 million square meters, and can automatically handle 4 million standard containers per year, or 25 per hour. It was also built to accommodate the heaviest ships in the world.

China is using its steel to build up the country’s infrastructure, and set world records along the way. Besides being impressive in size, the structures are expected to contribute to greater connectivity and economic prosperity throughout China.

Cover photo courtesy of Morgan Stanley.

The U-Shaped Relationship

However, the argument is not so black and white according to Spyridon Stavropoulos, Ronald Wall and Yuanze Xu’s Environmental regulations and industrial competitiveness: evidence from China. The study suggests that the relationship between stringent economic regulations and industrial (or economic) competitiveness is U-shaped. Meaning, initially, stringent regulations will increase the cost of production and make companies less profitable, but after a certain turning point, companies will be forced to adapt and innovate, thus becoming more competitive in the long run.

Many activists sit on both sides of the debate. (Source: Ethical Shopper)

When regulation policies are consistent over a long period of time, companies are forced to tackle the root of the problem, instead of focusing on meeting certain numbers. In today’s global economy, many governments have already begun to implement stringent economic regulations that only look to get tighter in the future. In such a context, companies that choose to innovate and come up with solutions to global pollution problems will come out more competitive in the end.

Sustainability Equals Competitiveness

Looking at major economic players around the world, it’s safe to say that environmental sustainability is a common topic on each of their respective national agendas. Pressing national challenges are tied to the environment in one way or another. For example, many countries are shifting their policies to ensure energy security. Countries that import most of their energy from external regions are subject to volatile prices and thus unstable economies. Thus, governments are actively supporting companies that can cultivate domestic, renewable energy sources. Another, more obvious, example is the direct link between pollution and health risks.

China is the fastest developing country in the world, and by 2035, it will be responsible for 28 percent of the total global energy demand. China also happens to be almost completely dependent on energy imports. Subsequently, the government has started a variety of government programs to boost sustainability as part of President Xi Jinping’s pledge to build a “Beautiful China”. These policies also come in the wake of shocking statistics: in 2015, pollution led to 1.8 million premature deaths in China.

Chinese President Xi Jinping laid out a 2-step plan to achieve a “Beautiful China.” (Source: News Gru)

Sustainable Steelmaker

Even with strong government commitment and plenty of programs to support sustainable business, most developing countries lack affordable renewable energy sources and the technology to apply those sources to existing production processes. Nevertheless, the world is changing and only those that adapt and innovate survive and thrive. That’s exactly what POSCO did starting back in 2007.

FINEX: A Game Changer

POSCO came up with a new molten iron production technology called FINEX. The technology allows molten iron and non-coking coal to be produced directly in a blast furnace during the iron-making process. It is different from the conventional blast furnace process, as it combines the coking plant, sinter plant and blast furnace into a single iron-making unit. This lowers production costs and reduces harmful emissions.

FINEX is a sustainable game-changer for steel production.

Ultimately, FINEX is one of the most cost-effective and eco-friendly ways to make steel. The technology mitigates the use of C02, has the lowest process-related emission rates and preserves resources through the use of a wide range of iron ores and non-coking coals. FINEX reduces SOx and NOx emissions by 40 and 15 percent respectively, and fine dust particles can be reduced by 34 percent compared to traditional blast furnaces. Furthermore, the by-products from the process generate highly valuable export gas that can be used for various purposes like electric power generation or natural gas substitution.

On December 7, 2017, POSCO reached 20 million cumulative tons of molten iron production using the FINEX technology. POSCO is not the only company enjoying the benefits of sustainable competitiveness – POSCO’s manufacturing partners can see lower emissions levels when evaluating the entire life cycle of their products.

SEE ALSO: POSCO Reaches 20 Million Tons of Production Using FINEX Technology

Sustainability is no longer just jargon. As environmental issues are intricately tied to the economy and even national security, governments around the world will be actively supporting sustainable companies in the years to come. Companies can expect sustainability and competitiveness to become interchangeable terms in the near future.

Upon completion, the Green Iris will transport limestones from the port of Donghae in Gangwon-do to Gwangyang Works from the beginning of 2018.

POSCO’s high manganese steel allows the fuel tank to withstand temperatures as low as -196℃, so that it can store and transfer LNG. Moreover, it is highly weldable and cost-efficient compared to other common materials for LNG fuel tanks such as nickel steel or aluminum alloys.

POSCO developed the technology for its high manganese steel after 10 years of research since the late 2000s. Now, it is one of POSCO’s leading World Premium Products (WPP). Due to strengthening environmental regulations worldwide on emissions of sulfur oxides, nitrogen oxides and carbon dioxide from vessels, demand for high manganese steel for LNG tanks are expected to increase dramatically.

Cover photo courtesy of Gas Asia Summit.

1. #Winning – competitiveness and sustainability

POSCO was recently named the world’s most competitive steelmaker for the eighth consecutive year by World Steel Dynamics (WSD). POSCO again took home the gold with the highest scores in five categories including innovative technology, cost reduction, skill level of labor, restructuring and investment environment.

POSCO is the world’s most competitive steelmaker.

Not only did POSCO come out on top for competitiveness, the company was ranked 35th among the “Global 100 Most Sustainable Corporations in the World in 2017,” by Toronto-based magazine and research firm Corporate Knights. The list was announced in early 2017 at the World Economic Forum in Davos, Switzerland. This is the third consecutive year POSCO made the list with outstanding scores in safety, environment and the salary levels of employees.

2. Joining the trillion club

POSCO entered the trillion club twice in 2017 as it recorded USD 1.283 billion (KRW 1.365 trillion) of operating profits in the first quarter, and USD 1.0581 billion (KRW 1.1257 trillion) in the third quarter based on its consolidated operating profit. Even in the midst of global oversupply and governments opting for protectionist policies, POSCO’s profits were unscathed. Much of the credit is owed to the company’s steel and non-steel affiliates overseas with strong sales performances. The consolidated debt-to-equity ratio was the lowest since 2010 and the non-consolidated debt-to-equity ratio was at its lowest ever.

POSCO recorded an operating profit over KRW 1 trillion in the first and third quarter of 2017.

To add, international credit rating agency S&P upgraded POSCO’s BBB-plus credit rating outlook to “stable” last February, and Moody’s also upgraded POSCO’s long-term corporate credit rating outlook to “positive” on October 26.

3. Everything’s bigger in…POSCO

Last June, after 102 days of repair, Pohang Blast Furnace No.3 became the world’s fifth-largest blast furnace. Its internal volume expanded from 4350㎥ to 5600㎥, allowing the super-sized blast furnace to put out 15,000 tons of molten metal daily. POSCO currently operates five super-sized blast furnaces, or blast furnaces sized 5500㎥ or larger.

Pohang Blast Furnace No. 3 under construction.

POSCO further upgraded Pohang Blast Furnace No.3 by adding in AI capabilities. It is now equipped with smart technology that can control the internal state of the blast furnace automatically, and smart sensors can now predict accidents before they happen, extending the lifespan of the furnace. Furthermore, POSCO plans to collect big data from the blast furnace and use it to develop fully smart blast furnaces in the future.

4. The smarter the better

Since his taking up the CEO position in 2014, POSCO CEO Ohjoon Kwon has repeatedly expressed his vision for securing future competitiveness through smart solutions. The company even started a smartization training course for employees and held the Smart POSCO Forum 2017 last July to share its insights and progress with clients and affiliates.

POSCO is gaining a competitive edge through smart solutions. (Source: Global Trade Magazine)

Moreover, POSCO also supported a smart talent training project customized for SMEs. The program included job training for AI and big data application technologies. Going forward, POSCO plans to build a “Smart Industry” to increase steel competitiveness and create new business opportunities with new, smart technologies.

SEE ALSO: How Factories Produce Steel- the Smart Way

5. Getting in on electric vehicles

The market for electric vehicles (EVs) is an exciting one with so many companies investing in new technologies. POSCO also hopes to extend its customized material and technology solutions to EV manufacturers. Last October, the company held the Global EV Materials Forum to showcase four of its core business areas: lightweight bodies, batteries, motors and charging infrastructure. More than 380 clients took part in the forum to learn about emerging trends and POSCO’s products and services including POSCO GIGA STEEL and commercially produced lithium batteries for EVs.

POSCO is a solutions provider for EV manufacturers. (Source: Bloomberg)

6. POSCO’s new marketing approach

For the first time ever, POSCO created and aired a TV commercial highlighting a specific product, instead of its corporate brand. This marks POSCO’s first B2C marketing effort and features the company’s innovative auto steel, POSCO GIGA STEEL. The commercial compares POSCO GIGA STEEL to aluminum, another widely-used lightweight material in a visual demonstration so that everyday drivers can better understand the benefits of a stronger yet lighter material.

7. Going for 10 million tons of automotive steel

On April 26, POSCO completed 7CGL, a new steel production facility in Gwangyang, Korea, designed exclusively for the production of POSCO GIGA STEEL. 7CGL has an annual capacity of 500,000 tons and is the world’s first plant capable of producing both 1.5 giga-level galva-annealed (GA) and galvanized (GI) steel sheets.

POSCO Completed 7CGL on April 26, 2017. (Source: Business Korea)

In addition, POSCO managed to reduce investment funds and secure cost competitiveness by designing and constructing 7CGL’s core facilities based on accumulated facility technologies and operating know-how. The 7CGL is POSCO’s 12th plant exclusively for automotive steel sheets, and POSCO aims to sell 10 million tons of automotive steel in 2018 globally.  

8. Setting new records with high manganese

POSCO became the first company in the world to commercialize the technology for producing high manganese using fusible ferroalloys. The technology took KRW 5.5 billion of research and development costs and four years to complete.

POSCO is the first company in the world to commercialize its high manganese production technology. (Source: Eramet)

The core part of POSCO’s high manganese production process is PosLM (POSCO Liquid Manganese), a special holding furnace that stores manganese ferroalloys in a fusible state. POSCO’s technology reduces the production time for high manganese steel by more than 50 percent as well as increases slab production efficiency. PosLM was jointly researched and developed by the Institute of Technology and POSCO M-tech.

9. Bringing home the lithium

On February 7, POSCO opened its PosLX (POSCO Lithium Extraction) plant with an annual capacity of 2,500 tons. The plant is the first plant in Korea capable of commercial lithium production. The technology took 7 years to perfect, but it was well worth it. The production process for high purity lithium now takes just 3 months, compared to the previous 12 to 18 months.

POSCO is making lithium extraction more efficient and sustainable. (Source: Mining)

In the past, Korean manufacturers imported the entire quantity of lithium they needed. With POSCO’s PosLX plant, partners now have access to a local supply of lithium. Moreover, POSCO plans to use lithium phosphate extracted from wasted secondary batteries as raw materials, in keeping with the company’s sustainability standards.

POSCO will continue building on a successful 2017 in the new year, by tackling new challenges and continuing to provide its partners with customized and optimal solutions in all business areas.

Cover photo courtesy of Hitech Building Solutions.

Since 2014, POSCO successfully completed 150 cases of restructuring.

Back in the 2000s, POSCO suffered its worst financial crisis due to failed investments in growing businesses. Its consolidated operating profit, which exceeded KRW 7 trillion at one time, recently fell to about KRW 2.5 trillion. POSCO’s cash on hand, which peaked at more than KRW 8 trillion, declined to nearly KRW 5 trillion, and credit ratings worsened as well.

That’s when CEO Kwon implemented the Innovation POSCO (IP) 1.0 and 2.0 projects successively to innovate the company’s financial structure and began broad-based restructuring. CEO Kwon recalls, “POSCO sold its non-core steel business, and merged similar businesses to increase efficiency and eliminate waste. We also liquidated low-yielding substandard businesses to prevent the aggravation of insolvency.”

As a result, the number of POSCO’s domestic affiliates decreased from 71 to 38, and the number of its overseas affiliates declined from 181 to 124. The company also recovered KRW 7 trillion over the 4-year period, and prevented annual losses of about KRW 400 billion.

Moreover, POSCO’s consolidated cash on hand increased to KRW 8.55 trillion at the end of the third quarter, repaid its debts by more than KRW 5 trillion and POSCO’s consolidated debt ratio dwindled to 67.6 percent, the lowest since 2010. Moody’s, an international credit rating agency, recently upgraded the forecast for POSCO’s issuer rating, Baa2, from negative to stable, and then to positive, and predicted that POSCO’s financial health will continue to improve in the next 1-2 years.

POSCO’s Future growth strategy is two-track: smartization and development of new growth engines.

CEO Kwon expressed his vision for the company In 2018 and beyond. He said, “POSCO plans to implement smartization with efforts such as combining ICT with its core businesses, ranging from steel and energy to construction and chemicals to develop newly converged businesses to lead the 4th Industrial Revolution.”

CEO Kwon delivering his new year’s message at the POSCO Family Kick-off Meeting 2018.

SEE ALSO: Building on a Year of Success: POSCO’s Top 9 News of 2017

The company will also accelerate the development of smart factories utilizing big data and artificial intelligence, and further enhance core processes for environmentally-friendly, highly-efficient and future-oriented steel mills.

In addition, CEO Kwon mentioned that POSCO will carry out new growth businesses this year in the energy and materials sectors. In the energy sector, POSCO will work to stabilize its power generation business, and expand its LNG midstream business by developing the Gwangyang LNG Terminal into the energy hub of Northeast Asia. POSCO is also planning to increase investments in renewable energy and seek business opportunities in line with government policies to reduce greenhouse gas emissions.

The company will also work to secure stable supplies of saline water and ores containing lithium in South America and Australia for its lithium business. It also plans to build accompanying infrastructure for mass production.

POSCO will also develop its own manufacturing processes for high-capacity cathode and anode materials used in secondary cells, and work to increase the sales of electric vehicles at home and abroad.

POSCO CEO Kwon Ohjoon greets employees after the kick-off meeting.

To close the event, CEO Kwon remarked, “For the next 50 years, let’s make greater efforts toward our goals with a clear and long-term perspective.”

Smart factories are bringing AI, IoT and Big Data to the manufacturing industry.

#1 How Smart Factories are Changing the Manufacturing Industry

The Fourth Industrial Revolution is bringing AI, IoT and other automated technologies into people’s lives and changing the way they live and interact with one another. It is also bringing about change in the manufacturing industry as more companies embrace smart factories to further enhance efficiency, performance and safety. Take a deeper look at how smart factories are reinventing the manufacturing industry.

SEE ALSO: How Factories Produce Steel- the Smart Way

POSCO GIGA STEEL also offers electric vehicle manufacturers a lightweight material solution.

#2 POSCO GIGA STEEL Increases Strength, Improves Safety in Autos

This year, POSCO GIGA STEEL set a new, industry standard for strength and formability for auto steel. The advanced high-strength steel (AHSS) is an automaker’s dream come true as it falls into the strongest category of steel commercially available today. Plus, its lightweight property makes it the perfect solution for manufacturers trying to design safe, high-performing and sustainable vehicles.

SEE ALSO: Ask an Expert: Has Steel Achieved Its Peak in Lightweighting?

Lithium-ion batteries are found in some of the most popular devices available today. (Source: BGR)

#3 POSCO’s Innovation Shapes the Ever-Growing Lithium Market

POSCO is the world’s 5th largest steel producer, but it’s got more up its sleeves than just steel. This year, POSCO developed game-changing technology that extracts lithium from water in just 8 hours to one month. Traditionally the task takes anywhere from 12 to 18 months. To add, the new technology can achieve a purity rate of 99.9 percent and increases the lithium recovery rate to over 80 percent.

Lithium is a central component in rechargeable batteries for electronics such as smartphones, laptops and most importantly, electric vehicles (EVs). Heading into 2018, POSCO is well-positioned to be an industry leader in a rapidly-growing market for EV batteries.

SEE ALSO: The Fuel of Tomorrow: Mining Lithium for Tomorrow’s Cars

POSCO CEO Kwon Ohjoon fires up Pohang Blast Furnace No.3

#4 POSCO Gets “Smart” with Pohang Blast Furnace No.3

In June, one of POSCO’s oldest and the world’s 5th largest blast furnace got a makeover with some added AI. After undergoing 102 days of repairs, Pohang Blast Furnace No.3 came back much bigger with an expanded furnace volume of 5600㎥, compared to its original volume of 3795㎥ from its beginnings in 1978. Plus, Pohang Blast Furnace No.3 now has smart sensors to monitor operations and detect malfunctions or accidents before they happen.

SEE ALSO: How to Make Steel with an Old(ie but Goodie) Blast Furnace

Ajay Telrandhe in Quality Assurance and Manish Kochar & Chetan Waghchoure in Sales talk to the Steel Wire.

#5 Ask an Expert: POSCO Leads India’s Growing Automotive Steel Market

POSCO Maharashtra is POSCO’s leading subsidiary. Three of their employees gave the Steel Wire an insider’s look into the company’s success, despite a challenging market environment and government restrictions. The team in India implemented positive changes in the company’s steel quality, production processes and customer service to become a leading solution-provider for their automotive partners.

SEE ALSO: Revving Up for Growth: India’s Automotive Market is In Full Gear

EVs, autonomous vehicles and shared mobility will drastically change the auto industry. (Source: Electrek)

#6 Ask an Expert: Electric Vehicles and the Future of the Automotive Market

Stephen Zoepf, executive director at the Center for Automotive Research at Stanford University, was the first speaker at POSCO’s 2017 Global EV Materials Forum. Zoepf shared his vision of what the future automotive market will look like and its implications for car manufacturers, suppliers and drivers. According to research, 60 percent of the cars in the U.S. will be running on electric batteries by 2030, and those cars will mostly be part of a shared mobility service. Traditional ways of car production, distribution and consumption will undergo massive change and companies will have to find ways to stay competitive in the new market dynamics.

SEE ALSO: The Forgotten Fleet: Looking Back on Early Electric Vehicles for a Better Future

Steel dresses from Naim Josefi’s 2017 F/W GANGS collection. (Source: Naim Josefi)

#7 Ask an Expert: Fashion Forward with Steel

Fashion designer Naim Josefi opened new possibilities for steel application with his 2017 F/W GANGS collection which included dresses made of elaborate steel sequins and laser-printed jeans. He is also known for his 3D-printed high heels that provide the perfect fit. The artist has a passion for fusing technology into his work and finding more sustainable ways to create beautiful clothes and says he will continue to use steel as a high-tech, fashion material.

Heading into a new year in 2018, the Steel Wire promises to be the best source of steel industry news and continue to provide exclusive, insightful and interesting stories.