South Korean steelmaker Hyundai Steel will build a liquified natural gas (LNG) power plant at its Dangjin Steel Works in order to support its efforts to reduce carbon emissions while switching to the electric arc furnace method, according to local media reports.
Hyundai Steel will build an LNG power plant with a capacity of 499 MW, which is scheduled to be operational in 2028. According to a company official, the plant in question will also be co-fired with hydrogen, and Hyundai Steel plans to increase hydrogen usage to reduce greenhouse gas emissions by 24 million mt by 2030.
According to the data shared by the Korea Environment Corporation, the company released 10,412 mt of pollutants in 2022, ranking behind the other major local steelmaker POSCO’s Gwangyang Steel Works and Pohang Steel Works. Since the central government has set a goal to become carbon neutral by 2050 and since other regions will start collecting carbon taxes, Hyundai Steel plans to reduce steel production using blast furnaces and increase electric arc furnace steelmaking starting this year, completely switching to it at some point. The Dangjin Steel Works required 6,600 GWh of power in 2022 and its power consumption is predicted to increase further when the company starts using only the electric arc furnace method.