POSCO, Major Shift to Eco-Friendly Process Centered on Hydrogen Reduction Steelmaking

Commercialization Target of HyREX Technology by 2030
Plan to Complete Transition to Hydrogen Reduction Submission by 2050

Molten iron flowing from the POSCO FINEX facility. (Photo by POSCO)

[Asia Economy Reporter Moon Chaeseok] POSCO is accelerating the 'low-carbon eco-friendly steelmaking process transformation' to achieve its 2050 carbon neutrality goal.

POSCO is dedicated to developing its hydrogen reduction steelmaking technology called 'HyREX.' This technology produces iron using hydrogen instead of fossil fuels like coal and natural gas. While fossil fuels generate carbon dioxide (CO₂) when chemically reacting with iron ore, hydrogen produces water (H₂O), thereby reducing carbon emissions.

The technology is based on POSCO's proprietary FINEX fluidized reduction furnace technology. POSCO began developing this technology in 1992 and has successfully produced 34 million tons of molten iron since its commercialization in 2007. In conventional blast furnaces, the 'reduction reaction' that removes oxygen from iron ore and the 'melting reaction' that melts the reduced solid iron are carried out by coal. In the hydrogen reduction steelmaking process, the reduction and melting reactions occur separately in the 'reduction furnace' and 'electric furnace,' not in a blast furnace.

POSCO is focusing on developing the HyREX technology, which uses 100% hydrogen, based on the fluidized reduction furnace technology applied in FINEX. Preparations are underway in collaboration with the government and domestic steelmakers.

HyREX is a completely different technology from the shaft reduction furnace technology used by overseas steelmakers in Europe, the United States, and China. Instead of using shaft reduction furnaces that reform natural gas into carbon monoxide and hydrogen gas, developing HyREX technology helps secure raw materials and reduce production costs. Temperature control in the reduction furnace becomes easier, reducing the defect rate in iron ore reduction.

POSCO plans to build a pilot plant with an annual capacity of 1 million tons at the Pohang Steelworks by 2028 to verify the commercialization potential of the new technology. Without a pilot production stage, it will enter the demonstration phase from 2025 and begin technology verification by 2030. Subsequently, POSCO aims to gradually convert the existing blast furnace facilities at the Pohang and Gwangyang Steelworks to hydrogen reduction steelmaking by 2050 to achieve '2050 carbon neutrality.'