POSCO Achieves Breakthrough... Collaborates with US ExxonMobil on World's First Mass Production of 'Cryogenic High-Manganese Steel'

25th Technology Approval Ceremony

Special Steel for LNG Storage and Transportation
Expanded Participation Opportunities in ExxonMobil Project

"Strengthening Future Hydrogen Business and CCUS Cooperation"

POSCO and ExxonMobil held a technology approval ceremony for cryogenic high-manganese steel. Joo Se-don, Head of POSCO Technical Research Institute (right), and Peter Clark, Senior Vice President of ExxonMobil, pose for a commemorative photo. (Photo by POSCO)

[Asia Economy Reporter Moon Chaeseok] POSCO has received technology approval from the U.S. energy company ExxonMobil for the world's first mass production of cryogenic high-manganese steel. It has been recognized as suitable for use as steel for liquefied natural gas (LNG) storage and transportation. Since this steel is available at a lower cost than the existing nickel-, chromium-, and aluminum-based materials used by domestic plant companies, it is expected to greatly contribute to resolving supply chain risks for domestic companies in the future.

POSCO and ExxonMobil announced on the 25th at the World Gas Conference (WGC2022) held in Daegu that they held a technology approval certificate handover ceremony for cryogenic high-manganese steel. The event was attended by Ju Sedon, head of POSCO's Technical Research Institute, and Peter Clark, senior vice president of ExxonMobil, among others. POSCO is the first company in the world to succeed in mass-producing cryogenic high-manganese steel. It is a new material developed for the first time in the world in 2013. This steel material is specialized in performance such as high strength, wear resistance, cryogenic toughness, and non-magnetism by adding 10-30% manganese to iron. This material passed ExxonMobil's material stability and suitability evaluation, allowing it to be supplied as steel for LNG storage and transportation. To participate in projects invested in by ExxonMobil, technology approval must be obtained, and POSCO has achieved this.

Cryogenic high-manganese steel is a special steel with excellent impact toughness and strength that can withstand environments below -162℃, which is required to maintain LNG in a liquid state. Manganese is the main component. Manganese is a raw material that is abundant in production worldwide and inexpensive. To make such special steel with existing materials, it was necessary to increase the content of expensive components such as nickel, chromium, and aluminum, but by obtaining technology approval with manganese, excellent price competitiveness has been secured. Given the ongoing rise in raw material prices and global supply chain instability, high-manganese steel is emerging as a new alternative for domestic and international plant companies struggling with material supply.

Director Ju said, "The two companies have shared research results transparently and strengthened technical cooperation based on mutual trust, and have the experience of jointly mass-producing the world's first high-manganese steel," adding, "We hope that the approved cryogenic high-manganese steel will lead to global project supply and create another success story for both companies." Senior Vice President Clark responded, "This collaborative achievement is the result of the fusion of ExxonMobil's expertise and POSCO's world-class technology," and said, "Let's continue to work together on technology development in various industrial application fields including LNG."

POSCO began the technology approval process in July 2020 to apply its high-manganese steel to environmentally friendly LNG terminals that ExxonMobil plans to build worldwide. When POSCO submitted test results and samples of the material, ExxonMobil simplified the procedure by conducting only essential verifications such as workability and safety evaluations. This was the reason the approval period could be reduced by more than half. The fact that high-manganese steel was applied to the 5th LNG storage tank in Gwangyang and to fuel tanks of about 20 LNG-powered ships and crude oil carriers, as well as ExxonMobil's longstanding trust in POSCO's technology, were decisive factors. The two companies concluded the approval process, which took about two years, with the certificate handover on this day. They agreed to continue discussions to apply POSCO's high-manganese steel to ExxonMobil's overseas LNG projects. They also promised to cooperate on technology development leading the eco-friendly fields such as hydrogen business and CCUS, as well as developing new applications for high-manganese steel.

Previously, POSCO received the 'Outstanding Contract Award of the Year' in the chemical, energy, environment, and materials fields at the North American Intellectual Property Association Annual Meeting in 2017. This was in recognition of successfully supplying the high-manganese steel for slurry pipes, developed for the first time in the world in 2013, to ExxonMobil's Cold Oil Sands project. At that time, POSCO and ExxonMobil conducted joint research from the early development stage in 2012, including pipe welding, pipe forming, and field testing of slurry pipes. Slurry pipes are steel pipes specialized for transporting oil sands. Applying high-manganese steel improves performance by more than five times in wear resistance compared to existing materials, thereby enhancing plant operation efficiency.