Pohang City Selected for Ministry of Industry's 'Energy Self-Sufficiency Infrastructure Construction Project' Competition

Total Project Cost of About 35 Billion KRW Including 20 Billion KRW National Funding, Full-Scale Promotion After May Agreement

Mayor Lee Gang-deok: "We Will Enhance Regional Steel Industry Competitiveness Through Smooth Project Implementation"

Pohang City has been finally selected in the ‘Energy Self-Sufficiency Infrastructure Construction Project’ competition hosted by the Ministry of Trade, Industry and Energy, securing 20 billion KRW in national funding.

Pohang City selected for the Ministry of Trade, Industry and Energy's 'Energy Self-Sufficiency Infrastructure Construction Project' competition.

The selected ‘Energy Self-Sufficiency Infrastructure Construction Project’ is part of the major renovation of the aging Pohang Steel Industrial Complex and the Smart Green Industrial Complex project. A total of 35.2 billion KRW, including 20 billion KRW in national funds, will be invested over three years in the Pohang Steel Industrial Complex.

This project aims to realize a demonstration complex for energy self-sufficiency by achieving carbon reduction, expanding renewable energy supply, and establishing an integrated energy management system through activation of distributed energy. It will be promoted in connection with the ongoing ‘Smart Energy Platform Construction Project’ targeting the existing Pohang Steel Industrial Complex.

The Energy Self-Sufficiency Infrastructure Construction Project will focus on three main areas: ▲building and stable operation of renewable energy infrastructure such as solar power, small wind power, and fuel cells tailored to the characteristics of the steel industrial complex ▲establishing an integrated energy management system based on international standards through analysis of energy usage in the steel complex ▲supporting carbon reduction through education and consulting for demand companies to obtain RE100 certification. The project is planned to be completed by 2026.

The Pohang Steel Industrial Complex has faced difficulties due to aging industrial facilities after several decades since its establishment, an industry distribution concentrated on traditional steel manufacturing, and insufficient infrastructure such as convenience facilities for workers. It was also confronted with internal and external challenges including global carbon emission regulations strengthening in response to global warming and demands for carbon neutrality.

Recently, the steel industrial complex has been converting fossil fuel-based production facilities to electric facilities to respond to global carbon regulations. With the promotion of this project, which reduces energy costs and increases energy self-sufficiency rates, it is expected to greatly contribute to stable steel production and strengthening industrial competitiveness.

The city plans to use this competition to sign a memorandum of understanding in early May with ‘SK E&S,’ designated as the first-priority negotiation partner and lead organization, along with a consortium of 10 companies including Gyeongbuk Research Institute, Pohang University of Science and Technology, Yeongnam Energy Service, Samwon Steel, and the Korea Industrial Complex Corporation, making it a stepping stone for the steel industry’s leap forward.

Mayor Lee Kang-deok said, “The Energy Self-Sufficiency Infrastructure Construction Project will enhance the competitiveness of Pohang’s steel industry and greatly help the regional economy,” adding, “We will do our best to transform the local industrial ecosystem and establish a foundation for sustainable development through the full-scale promotion of the project.”