Ministry of Industry to Promote Large-Scale R&D for Developing New Carbon Emission Reduction Processes Including Hydrogen Reduction Steelmaking

[Sejong=Asia Economy Reporter Joo Sang-don] The government has decided to promote large-scale research and development (R&D) on new industrial processes such as 'hydrogen reduction steelmaking,' which uses hydrogen instead of coal as a reducing agent in the steel smelting process, to fundamentally reduce carbon emissions. It plans to officially start the preliminary feasibility study project, recognizing that more than 30 billion KRW in financial investment is necessary.

On the 9th, the Ministry of Trade, Industry and Energy held the 4th Working-level Meeting of the 'Carbon Neutral Industrial Transition Promotion Committee,' attended by Kim Young-joo, Executive Director of the Steel Association, and representatives from 13 industry associations, to discuss this matter. At this meeting, the ministry is expected to present the direction for promoting carbon reduction technology development.

First, the ministry plans to officially begin planning the preliminary feasibility study project, recognizing that large-scale R&D is essential for the fundamental reduction of carbon emissions. This judgment is based on the inevitability of developing new industrial processes such as hydrogen reduction steelmaking and electric heating naphtha cracking processes, which are completely different from the past, in high-emission industries such as steel, petrochemicals, cement, semiconductors, and displays.

To achieve greenhouse gas reduction results in the short term, it is necessary to rapidly promote technology development for efficiency improvement and advanced process management. The ministry plans to actively discover related tasks and invest as much as possible starting from 2022. Additionally, for industries such as automobiles, shipbuilding, and machinery, where carbon is emitted during the usage phase rather than the production process, the ministry will focus on fostering items directly linked to reducing fossil fuel use, such as electric and hydrogen vehicles and eco-friendly ships.

Jang Young-jin, Director of Industrial Innovation at the Ministry of Trade, Industry and Energy, said, "Considering that achieving carbon neutrality by 2050 ultimately depends solely on the development of innovative technologies, we will strive to increase the budget for new industrial process carbon neutrality R&D projects in 2022." He added, "The transition of industrial processes to carbon neutrality can be both a crisis and an opportunity for companies, so the ministry’s policy to strengthen R&D investment in industrial processes is expected to enhance our companies’ competitiveness and serve as a solution to lead Korea to become an industrial powerhouse."