LG, Posco launch carbon capture project: 'An important turning point'

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LG, Posco launch carbon capture project: 'An important turning point'

Published: 07 May. 2025, 16:31 Updated: 07 May. 2025, 20:35

Audio report: written by reporters, read by AI

LG Chem's dry reforming of methane plant for carbon capture and utilization in Daesan, South Chungcheong [LG CHEM]

LG Chem and Posco Holdings will jointly pursue a demonstration project to develop carbon capture and utilization (CCU) technologies, aiming to reduce emissions from their core industries of chemicals and steelmaking, the firms said Wednesday.

The project is part of a broader CCU megaproject backed by the Ministry of Science and ICT.

It will link emissions from Posco’s steelworks with LG Chem’s proprietary dry reforming of methane (DRM) technology, which converts carbon dioxide (CO2) into usable carbon monoxide or hydrogen.

The plan is to capture CO2 at Posco’s Pohang Steelworks and convert it using LG Chem’s DRM process. The resulting carbon monoxide and hydrogen can serve as alternative reducing agents to coal in ironmaking. Carbon monoxide can be repurposed as feedstock for chemical products such as plastics while hydrogen can serve as a clean energy source.

The companies expect the partnership to curb carbon emissions and ensure a cost-efficient supply of raw materials and fuel. They hope the initiative can act as a “game changer” in achieving carbon neutrality in heavy industries.

LG Chem began operating a 1,000-ton DRM pilot facility in Daesan, South Chungcheong, in 2023. The joint demonstration at Pohang Steelworks is set to begin next year, with construction of the necessary infrastructure finished by 2028 and a full demonstration run targeting completion by 2030.

“This collaboration marks an important turning point toward a carbon-neutral era led by the chemical and steel industries,” said Lee Jong-ku, chief technology officer (CTO) and executive vice president at LG Chem.

“We will continue to pursue challenges and breakthroughs that go beyond traditional industrial models to lead sustainable innovation and carbon reduction globally.”

Posco Holdings plans to either sell the resulting syngas — a mix of carbon monoxide and hydrogen — as feedstock for sustainable aviation fuel and other products or reuse it in its steelmaking process to build a circular resource system.

The company said it aims to integrate its research and development, technical and business units to seek long-term growth opportunities from the project.

“We will focus our capabilities on reducing emissions from production and converting carbon into high-value-added materials,” said Kim Ki-soo, CTO and head of Posco Holdings research institute N.E.X.T Hub. “The goal is to maximize synergy between both companies.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY CHOI SUN-EUL [[email protected]]