POSCO reveals plans to pour $142 billion into new steel and green initiatives

Korean powerhouse POSCO, the world’s 6th largest steel producer, has revealed plans to invest $142 billion into projects aimed at significantly expanding and “greening” its global operations.

Local Korean media have confirmed that 60% of the investment will be targeted at activities in South Korea. That investment will target developments at steel plants in the south eastern port of Pohang and the southern port of Gwangyang.

“POSCO will make the investment as part of efforts to develop itself as a major company of eco-friendly future resources with the best competitive edge in the world,” POSCO chairman Choi Jeong-woo told the audience at a local event.

Mr Choi said the company’s strategy is targeted at cementing POSCO’s leading status in key business areas by securing future technologies and pre-empting growing market opportunities.

POSCO has estimated that the new projects will lead to approximately 330,000 new South Korean jobs.

Battery minerals focus

Mr Choi confirmed the company will also target clean energy opportunities such as rechargeable battery production and hydrogen developments.

One of the key projects identified will be for the use of a hydrogen reduction technology known as HyREX at two of its ironmaking facilities.

HyREX uses hydrogen to convert fine iron ore into direct reduced iron and charge it into an electric smelting furnace to produce hot metal. The technology is part of POSCO’s ambitions to reach near-zero carbon dioxide (CO2) emissions.

If successful, POSCO aims to commercialise the technology in the near future.

“With the investment, (the group) will secure future technologies, stay ahead in the growing industries and work toward a sustainable future through green materials,” chairman Choi Jeong-woo said.

POSCO’s new low carbon product plans

The latest hydrogen fuelled plans are part of a company-wide low carbon offset policy.

In early June POSCO provided insights into the current global demand for carbon reduction and presented its 2050 carbon neutral roadmap. The company also unveiled a line-up of low-carbon products set to be released by 2030.

This included “Greenate certified steel,” which effectively reduces carbon emissions by distributing the emissions saved through the implementation of low-carbon production processes and the use of low-carbon steel.

POSCO Group also recently launched Greenate, a master brand representing the company’s ambitious mission to achieve carbon neutrality by 2050.

Greenate covers all the efforts and products of the POSCO Group to produce low-carbon steel and eco-friendly secondary battery materials, as well as the three major eco-friendly steel brands: Autopos, INNOVILT, and Greenable.