Posco steels itself for journey to carbon neutrality by 2050
![On July 13, at the Posco headquarters in Pohang, with around 250 executives and staff members including Vice Chairman Kim Hak-dong in attendance, Posco declared the corporate vision “Better World with Green Steel.” [POSCO]](https://koreajoongangdaily.joins.com/data/photo/2023/11/29/c9d5e4d7-d47e-41c3-a6ff-75005d4b8448.jpg)
On July 13, at the Posco headquarters in Pohang, with around 250 executives and staff members including Vice Chairman Kim Hak-dong in attendance, Posco declared the corporate vision “Better World with Green Steel.” [POSCO]
Since it was founded in 1968, Posco has grown to become the 6th largest global steel company by crude steel production, playing a foundational role in the leap of Korea's manufacturing industry over the past 55 years.
After privatization in 2000, Posco steadily invested in and developed technologies, emerging as a world-class steel company.
Following the completion of the Pohang steelwork 50 years ago, Posco achieved its first landmark by consistently ranking 1st for 13 consecutive years in the World's Most Competitive Steel Companies by World Steel Dynamics (WSD), a global steel analysis institution.
Now, aiming for carbon neutrality by 2050, Posco is set to create its next landmark with the development of hydrogen reduction steelmaking technology, which does not require coal.
On July 13, at its headquarters in Pohang, Posco declared its vision, “Better World with Green Steel.” Posco's vision encompasses its identity as a steel company, including being future orientation and the significance of carbon neutrality.
During the commemorative speech, Vice Chairman Kim Hak-dong said: “Beyond the traditional image of the steel industry as a heavy carbon-emitting industry, Posco will lead the evolution of the industry through the convergence of various advanced technologies, seizing the blue ocean of the future steel industry.”
He also highlighted that Posco should lead the new Iron Age as the first mover and a representative eco-friendly future materials company.
“With the era's demand for carbon neutrality, the rise of ESG [Environmental, social, and corporate governance] management, intensified geopolitical conflicts, and the shift to a post-globalization era, coupled with the transition to the digital transformation era, it has become a critical juncture to seriously contemplate the path we should take, why we should take that path, and what strategy we should adopt to navigate through this time of general uncertainty,” Kim stated.
He emphasized that, for sustainable growth, more than ever it is a time to seriously consider the need for a new benchmark to respond to the era's transformations and lead the way on future management approaches.
Posco plans to gradually transition from traditional production methods to establish a hydrogen reduction steelmaking production system. Currently, Posco is developing commercial technology for hydrogen reduction steelmaking, based on its unique “FINEX” process, known as “HyREX.”
In July of last year, Posco signed an agreement for engineering and technical cooperation in designing a pilot HyREX plant with Primetals, a plant construction company in the U.K. that jointly designed the FINEX facility with Posco.
They have initiated the design of the HyREX pilot plant, which is scheduled to be introduced in 2026 to confirm commercial viability. By 2030, Posco aims to complete the commercial development of HyREX technology and, by 2050, gradually transition the existing blast furnaces route at Pohang and Gwangyang steelworks to hydrogen reduction steelmaking process to achieve carbon neutrality.
Posco has been actively engaged in continuous research and development to commercialize eco-friendly steelmaking technology and has made efforts to build consensus with global steel companies.
In particular, since 2021, Posco has hosted the world's first international hydrogen reduction steelmaking forum, HyIS Forum, in Seoul, bringing together global steel companies, steel associations from various countries and representatives from related industries.
Through the forum, Posco could reaffirm its central role in the steel industry's transition to a carbon-neutral era through the sharing of ideas to advance the widespread adoption of hydrogen reduction steelmaking technology.
Internationally, Posco plans to establish an environmentally friendly production system, focusing on regions with high growth potential such as Indonesia, India and North America.
The ambitious steel company aims to more than double its overseas steel production capacity from five million tons in 2022 to over 10 million tons by 2030, driving quantitative growth and solidifying its position as a global steel company.
Through these long-term growth strategies, Posco aims to establish a global steel production capacity of 52 million tons by 2030, securing a combined revenue of 100 trillion won ($77 billion), which is three times the level of 2022, and achieving a combined operating profit ratio that is twice the level of 2022.
The overarching plan is to position itself as a global top five steel production company in terms of capacity and the global No. 1 in terms of profitability by 2030.
BY KIM SU-HYEON [kim.suhyeon4@joongang.co.kr]
with the Korea JoongAng Daily
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